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Romania's Transgaz terminates legacy contract with Gazprom for gas transmission

Romania's Transgaz terminates legacy contract with Gazprom for gas transmission Transgaz. Author (Transgaz.ro) License: all rights reserved.

BUCHAREST (Romania), February 22 (SeeNews) - Romanian gas transmission system operator Transgaz [BSE:TGN] said on Monday that its legacy contract with Russia's Gazprom Export for gas transit through the Negru Voda - Isaccea 3 pipeline connecting Bulgaria to Ukraine via Romania was terminated by the mutual consent of the parties.

The agreement for the termination of the legacy contract valid until the end of 2023 was signed following intense negotiations between the European Commission (DG-ENER), Transgaz SA and Gazprom Export regarding the gas transmission through the T3 transit pipeline on the territory of Romania to third countries, Transgaz said in a report sent to the Bucharest Stock Exchange, BVB.

This agreement creates the prerequisites for the application of the European regulatory framework for gas transmission capacity booking through the T2 and T3 transit pipelines. At the same time, it ensures the optimal protection of Transgaz' financial interests arising from the legacy contract for gas transmission through the T3 transit pipeline, Transgaz noted.

The agreement also creates the necessary framework for the conclusion of the Interconnection Agreements for Isaccea 2, 3 and Negru Voda/Kardam 2, 3 Interconnection Points, ensuring the free access of third parties to capacity booking on the T2 and T3 transit pipelines. Moreover, it ensures the collection of the remaining amounts to be paid from the legacy contract and it creates the premises for increasing the use of the Romanian gas transmission infrastructure.

Transgaz has a twenty-five year old contract with Gazprom for natural gas transportation through three gas pipelines in the region of Dobrogea, in the southeast of the country.

Blue chip Transgaz traded 0.66% higher at 305 lei ($76/63 euro) by 1042 CET on the Bucharest Stock Exchange.

(1 euro= 4.8747 lei)

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