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BUCHAREST (Romania), April 16 (SeeNews) - Romanian gas transmission company Transgaz [BSE:TGN] said on Monday it has started works on three compressor stations - in Podisor, Bibesti and Jupa, for the natural gas pipeline connecting Bulgaria, Romania, Hungary, and Austria (BRUA).
This is part of Phase 1 of the construction of the pipeline, Transgaz said in a statement filed with the Bucharest Stock Exchange, BVB.
Each station will be equipped with two compressor units and will be able to provide bi-directional gas flows.
The strategic importance of the project has determined the European Union's (EU) decision to get involved in the financing of the engineering works on the compressor stations through a grant of 1.5 million euro representing half of the estimated eligible costs, the company added.
"The investment made in the three gas compressor stations provides further proof of the company’s capacity to develop ambitious strategic investment projects ensuring the sustainable development of the National Gas Transmission System and its alignment with the EU performance and competitiveness standards," Transgaz director general, Ion Sterian, said.
At the end of March, Transgaz signed a 288.7 million lei ($77 million/62 million euro) contract for the construction of the three compressor stations with a consortium led by Inspet and comprising Petroconst, Moldocor, Habau PPS Pipeline Systems, IRIGC IMPEX, Sutech, TIAB and Roconsult Tech as members.
The overall estimated value for Phase 1 is 478.6 million euro and the estimated deadline for completion is end-2019.
Besides the construction of the compressor stations, Phase 1 involves the development of the Romanian gas transmission system along Bulgaria – Romania – Hungary – Austria route through the construction of a pipeline linking Podisor technological node to Horia gas metering station.
The pipeline route follows the general direction from south-east to west, crossing the Romanian counties of Giurgiu, Teleorman, Dambovita, Arges, Olt, Valcea, Gorj, Hunedoara, Caras-Severin and Timis.
Along the route of the pipeline, 38 section valves stations will be constructed, of which 33 on the pipeline and 5 in the gas compressor stations, as well as 18 cathodic protection stations.
Transgaz shares traded 0.62% higher at 405 lei on the Bucharest Stock Exchange by 1151 CET on Monday.
(1 euro=4.6507 lei)