March 5 (SeeNews) - Romanian gas transmission system operator Transgaz [BSE:TGN] said it has signed a memorandum of understanding with the European Bank for Reconstruction and Development (EBRD) on cooperation and support for the company's investment programme.
Based on Transgaz’ needs, the EBRD will consider participation in project financing by providing debt or equity instruments depending on the situation, Transgaz said in a press release on Wednesday.
The investment programme is aimed at extending, upgrading and replacing the domestic network in order to improve the access of end users, enhance the security of gas supply and diversify energy sources.
Through the investment programme, Transgaz and the EBRD also aim to cooperate for the development of the interconnection of gas networks so as to improve the security of supply and to diversify gas sources in the entire region. The two parties will also collaborate in research and development projects in order to ensure the transition to cleaner gas.
Transgaz has a ten year network development plan in which the projects are in the total amount of 1.25 billion euro ($1.39 million). Transgaz and EBRD have a successful cooperation for the financing of the BRUA project for which the bank has granted Transgaz a loan of 278 million lei ($64 million/58 million euro).
At the same time, Transgaz and the EBRD were partners in the attempt to procure a stake in the Hellenic transmission system operator DESFA. The EBRD and its subsidiary Vestmoldtransgaz collaborate in the Ungheni – Chisinau gas pipeline project.
Transgaz' shares traded 2.98% lower at 293 lei on the Bucharest Stock Exchange as at 1107 CET on Thursday.
(1 euro=4.8057 lei)