Monday, June 14, 2021
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Transgaz terminates legacy contract with Gazprom

Romanian state-owned gas transmission system operator Transgaz has reached an agreement with Russian group Gazprom to terminate a contract that was valid until the end of 2023. The mentioned contract allowed Gazprom to use one of Transgaz’s transit pipelines to send gas to countries in Western Europe.

The agreement on termination of the contract was signed after intense negotiations between the European Commission (DG-ENER), Transgaz and Gazprom Export regarding the gas transmission through the T3 transit pipeline on the territory of Romania to third countries.

“The National Gas Transmission Company TRANSGAZ would like to inform that, for the purpose of applying the European regulations on the T2 and T3 gas transmission pipelines, of the conclusion with the adjacent transmission system operators of the interconnection agreements related to the entry/exit points of such pipelines, the legacy contract for gas transmission through the T3 transit pipeline on the territory of Romania to third countries, concluded with Gazprom Export (GPE) and valid until 2023, was terminated by the mutual consent of the parties,” read Transgaz’s official statement.

From 2024 Transgaz will be able to apply the European regulations on the T2 and T3 transmission pipelines, ensuring the free access of third parties to capacity booking on them and at the same time it ensures the optimal protection of Transgaz’s financial interests arising from the legacy contract for gas transmission through the T3 transit pipeline.

“The intense negotiations between the European Commission (DG-ENER), Transgaz and Gazprom Export (GPE) materialised in an agreement for the termination of the legacy contract between Transgaz and GPE concluded for the gas transmission through the T3 transit pipeline on the territory of Romania to third countries,” announced Transgaz, in a note to investors.

The agreement also 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.

According to Gazprom, as of 31 December 2019, in the course of the parties’ cooperation over 131.82 billion cubic metres (bcm) of gas has been supplied to Romania so far, including 994 million cubic metres (mcm) in 2019.


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