EBRD became a shareholder in Vestmoldtransgaz following the fulfilment of the conditions precedent related to a Subscription Agreement whereby EBRD undertook to increase the share capital of Vestmoldtransgaz by EUR20 million in order to finance the development costs of the Ungheni – Chisinau gas transmission pipeline.
Established in 2014, Vestmoldtransgaz owns and manages the gas pipeline network in the West of the Republic of Moldova and provides gas transmission services in this country. In 2018, Vestmoldtransgaz was acquired by Eurotransgaz SRL, a subsidiary of Transgaz.
The 120-km long Ungheni-Chisinau gas transmission pipeline interconnects the gas transmission systems of Romania and the Republic of Moldova by connecting the Municipality of Chisinau to the interconnection pipeline Iasi-Ungheni between the Eastern city of Romania, Iasi and Ungheni, a city in the Republic of Moldova, located on the border with Romania.
”The partnership with the European Bank for Reconstruction and Development in Vestmoldtransgaz is a source of pride for Transgaz and, at the same time, a positive signal both for the economy of our country and for the economy of the Republic of Moldova. It is also a proof of the fact that Transgaz manages to successfully accomplish, under efficiency conditions, the investment projects it has started. The deal sealed with EBRD confirms once again the active partnership between the EBRD and Transgaz – a partnership expressing the bank’s interest in supporting the company’s strategic investment program for the development of the interconnection between the gas networks of the region leading to the increase in the security of supply and the diversification of the gas supply sources”, stated Ion Sterian, General Manager of Transgaz.
Sterian also said the Ungheni-Chisinau pipeline is a strategic project for Romania, for the Republic of Moldova, for Transgaz and now for the EBRD as well. “We managed to finalize this investment, thus also becoming the first Romanian multinational company in the gas transmission sector, with a contribution to the regional energy security. Last year, Transgaz and the BERD concluded a Memorandum of Understanding on the cooperation and support for the investment in the energy sector, under which, depending on TRANSGAZ’ financing needs, EBRD will consider participating in the financing of projects by providing debt or equity instruments. Now, this framework is accomplished by EBRD’s acquiring a stake in Vestmoldtransgaz, thus creating the premises for important projects in the future. There is a successful cooperation between Transgaz and the EBRD regarding the financing of the BRUA project”, Sterian added.
“The Ungheni-Chisinau gas transmission pipeline, connecting the Moldovan gas network to the European Union via Romania, is an important step towards geographical diversification of Moldova’s energy supplies. Having invested in a 25 per cent stake in Vestmoldtransgaz, the EBRD is playing a key role in strengthening the country’s energy security and contributing to sustainable economic growth that benefits everyone”, stated EBRD Vice-President, Alain Pilloux.
Transgaz ended the first six months of 2021 with a consolidated net profit of RON133.3 million, down 43.6% on the year, and a turnover of RON798.8 million, down 6.15% on the year.
Transgaz is 58.5% owned by the Romanian State and the remainder is distributed among other stock market investors.