BUCHAREST (Romania), January 25 (SeeNews) - Romanian gas transmission system operator Transgaz said on Tuesday that together with the Three Seas Initiative Investment Fund (3SIIF) it plans to set up a joint venture company to implement gas hydrogen blend transmission infrastructure projects worth a total 626 million euro ($708 million).
Transgaz's shareholders approved the conclusion of a legal consultancy contract for analysing and negotiating the legal, financial and commercial terms of the association, the company said in a statement filed with the Bucharest Stock Exchange, BVB.
The estimated value of the legal consultancy contract is 150,000 euro.
The plan envisages the setting up of a joint stock company registered in Romania, in which Transgaz will hold 51% of the capital, and the Three Seas Initiative Investment Fund - the remaining 49%, according to a document posted on Transgaz's website in December. The new company would develop one or more projects related to the transport of hydrogen through pipelines, which after completion would be sold to Transgaz at a price that would allow the joint venture to cover its development costs and generate a pre-determined return for its associates, the document revealed.
Shareholders also decided Transgaz's adhesion to the European Hydrogen Backbone (EHB) group, which presents a vision for a 39,700 km hydrogen pipeline infrastructure in 21 countries.
The Three Seas Initiative Investment Fund is an investment vehicle designed to finance key infrastructure projects in the Three Seas region. The Three Seas Initiative is a platform for improving connections among twelve EU Member States located between the Baltic, Adriatic and Black Seas.
The Romanian state owns 58.5% interest in Transgaz, with the remainder in free float on the BVB.
Blue-chip Transgaz's shares traded 3.36% lower at 222.5 lei on the Bucharest Stock Exchange as at 1418 CET on Tuesday.
(1 euro=4.9440 lei)
Transgaz SA is among the biggest companies in SEE, for more reference take a look at Top 100 companies