December 18 (SeeNews) - The European Investment Bank (EIB) said it is lending 50 million euro ($57 million) to Romanian gas pipeline operator Transgaz [BSE:TGN] to finance a new pipeline linking newly identified gas resources in the Black Sea to national and European gas transmission networks.
The transaction is backed by the European Fund for Strategic Investments (EFSI), the financial pillar of the Investment Plan for Europe, or "Juncker Plan", the bank said in a press release on Monday.
The new 308 km pipeline will link Romania’s natural gas resources on the Black Sea shore with both the national gas transmission network and the BRUA gas transmission corridor between Bulgaria, Romania, Hungary and Austria, thus connecting the transmission systems of Southeast Europe and Central and Western Europe. It will be connected to the existing gas transmission system and the new BRUA transmission corridor in Podisor, at the west of Bucharest.
"This project, supported by the Juncker Plan, is significant for to multiple reasons: it will facilitate the utilisation of newly identified natural gas resources in the Black Sea, located in the EU. It strengthens links with the Western European gas transmission network and hence, contributes to the diversification of gas supplies. Finally, it will strengthen the competitiveness in the gas sector with positive impacts on EU citizens and economy," EIB Vice President Andrew McDowell said.
As part of the project, the EIB, via the European Investment Advisory Hub, which is the advisory pillar of the Juncker Plan, will support Transgaz in drafting a Strategic Environmental Assessment for its ten-year Development Plan.
"It is of strategic importance for Black Sea produced gas to be incorporated into the National Gas Transmission System and transported to the Romanian and EU markets so as to increase the security of gas supply to Romania and the EU and to safeguard the security of gas supply for Romanian consumers," Transgaz director general Ion Sterian said.
Earlier in 2017, the EIB signed two contracts with Transgaz – for 50 million each – also receiving EFSI guarantees for financing the first phase of the Romanian section of BRUA gas pipeline.
Transgaz shares traded 1.04% lower at 333 lei on the BVB as at 1448 CET on Friday.
($=0.8783 euro)
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