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Romania's Transgaz, energy min sign 6.8 mln euro financing contract

Jun 3, 2024, 11:56:02 AMArticle by Alexandru Cristea
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June 3 (SeeNews) - Romanian gas transmission system operator Transgaz [BSE:TGN] said that it has signed a contract with the energy ministry to receive 33.97 million lei ($7.4 million/6.8 million euro) in non-refundable financing under the EU's Modernisation Fund for the construction of a pipeline to supply the Mintia thermal power plant (TPP) with gas.

Romania's Transgaz, energy min sign 6.8 mln euro financing contract
Source: transgaz.ro

The gas pipeline, which will supply Mintia TPP as well as other industrial and domestic consumers, will run over a total distance of 57 km in the western county of Hunedoara and its constructon will require a total investment of 300.7 million lei, Transgaz said in a press release issued with the Bucharest Stock Exchange on Friday.

"It is a step forward for this plant to be commissioned in 2026. We are basically providing the raw material, the gas, for the plant. It is a great project, the largest gas-fired power plant in Europe - 1,700 MW installed power. This project means jobs for Romanian citizens, we are talking about more than 1,200 jobs during the construction of the plant, [...] we are talking about the most efficient plant in Europe, with an efficiency of 64% and, therefore, a substantial support that Romania receives on the path towards the green transition and the replacement of coal in the energy mix with natural gas, a strategic resource to which Romania has access," Romania's energy minister Sebastian Burduja said.

In 2022, Iraq's Mass Group Holding bought Mintia TPP from Hunedoara Energy Complex (CEH) for 91.2 million euro ($91 million) in a public auction, after the plant entered insolvency in 2019. The Iraqi company plans to invest over 1 billion euro in transforming Romania's Mintia thermal power plant (TPP) into the largest natural gas-fired electricity production facility in the European Union.

Funded by revenues from the auction of emission allowances from the EU’s Emissions Trading System, the Modernisation Fund assists ten EU countries with lower incomes in their transition to climate neutrality.

The Romanian state owns 58.5% of Transgaz, with the remainder in free float on the Bucharest Stock Exchange.

Transgaz shares traded 0.22% lower at 22.4 lei as at 1017 CET on June 3 on the Bucharest bourse.

(1 euro=4.9767 lei)

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