Friday, July, 01, 2022 08:04:50

The European Bank for Reconstruction and Development (EBRD) has acquired a 25% stake in Vestmoldtransgaz, the gas transmission company, to strengthen energy security in Moldova. EBRD has invested $24 million as a part of the capital increase in Vestmoldtransgaz. 

Vestmoldtransgaz has a newly constructed Ungheni-Chisinau gas pipeline. Along with owning and managing a gas pipeline system in western Moldova, the company offers natural gas transport services. Eurotransgaz, a subsidiary of SNTGN Transgaz, acquired Vestmoldtransgaz in 2018.

Over 90% of Moldova is dependent on energy imports and the Ungheni-Chisinau gas pipeline will help expand its energy sources. It is reported that this 120km pipeline will shortly be functional and complete the connection of gas transmission systems of Moldova and Romania.

The construction cost of the pipeline is €90 million and is supported by and an equity investment from Eurotransgaz and a loan of €38 million from the European Investment Bank (EIB) 

EBRD and Transgaz signed a Memorandum of Understanding in March to support investments in the Romanian energy sector, stated the CEO of SNTGN Transgaz, Ion Sterian.

He confirmed that the contract between EBRD and Vestmoldtransgaz, highlights EBRD’s commitment to its partnership with Transgaz and its interest in backing supporting Transgaz’s strategic investment program. The program aims to create the interconnection of natural gas networks in the area which will lead to improving the security and safety of supply and as a modification of natural gas sources.

The EBRD supported Vestmoldtransgaz for the social and environmental component of the Ungheni-Chisinau project and ensure the highest standards are met, he further added.

EBRD Vice President, Alain Pilloux stated that the connection will improve Moldova’s energy security by expanding its gas supply sources. The project will also help in integrating Moldova major gas infrastructure projects in the future including gas sources from central European hubs, Trans Adriatic Pipeline and links it with Black Sea gas deposits.