Monday, November 30, 2020
Home Oil & Gas EBRD invests in Ungheni-Chisinau gas pipeline

EBRD invests in Ungheni-Chisinau gas pipeline

The European Bank for Reconstruction and Development (EBRD) acquired 25 per cent stake in Vestmoldtransgaz, the gas transmission company that is operating the newly built Ungheni-Chisinau gas pipeline.

Early in May, the Minister of Economy and infrastructure Sergiu Răilean visited the construction site welcoming its progress. The 120 kilometres gas pipeline will soon become operational and complete the connection of the gas transmission systems of Romania and Moldova.

The Ungheni-Chisinau gas pipeline will enable Moldova – a country more than 90 per cent dependent on energy imports – to diversify its energy sources.

“In March this year, Transgaz and the EBRD signed a Memorandum of Understanding to support investments in the Romanian energy sector,” recalled Ion Sterian, CEO of Transgaz, whose subsidiary Eurotransgaz took over Vestmoldtransgaz in 2018. “We are confident that this transaction will contribute to the long-term development of the gas transmission sector in Moldova.”

The EBRD has invested 20 million euros as part of a capital increase in Vestmoldtransgaz. The construction of the 90 million euros pipeline has also been supported by a 38 million euros loan from the European Investment Bank (EIB) and an equity investment from Eurotransgaz.

“This connection will enhance Moldova’s energy security by diversifying its gas supply sources, a prerequisite for the country’s successful development,” added Alain Pilloux, EBRD Vice President. “The project also helps integrate Moldova into future major gas infrastructure projects such as the Trans Adriatic Pipeline and gas sources from central European hubs and links it with Black Sea gas deposits. Greater integration will deliver economic benefits for consumers.”

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