As with the first EUR50 million loan tranche signed in October 2017, the EIB funds will finance the construction of a new European gas transmission corridor to increase security of gas supply and to reduce energy dependence through diversification of gas supply routes and sources. This operation is backed by the European Fund for Strategic Investments (EFSI), which is the main pillar of the Investment Plan for Europe (IPE).
“This is the first EIB loan provided in Romanian Leu to a corporate since the launch of EIB lending operations in the country in 1992. It will enable Transgaz greater flexibility to avoid currency exchange risk in financing gas infrastructure in the region. The project also contributes to the expansion of the number of gas suppliers in South-Eastern Europe and opens the regional market to increased competition ,” said EIB vice-president Andrew McDowell.
“I particularly appreciate the flexibility shown by the EIB and I would like to congratulate the teams that have contributed to this result. For our company, this funding line is part of a set of core measures on which we rely for our major infrastructure projects,” said Transgaz general manager Ion Sterian.
The new pipeline represents the first phase of the Romanian section of the gas pipeline from Bulgaria to Austria via Romania and Hungary (BRUA). The Transgaz-BRUA Gas Interconnection project, estimated to cost over EUR500 million, has been awarded a grant of EUR179 million by the European Commission under the Connecting Europe Facility (CEF).
The EIB funds will finance the construction of a 478-km natural gas transmission pipeline between Podisor and Recas and the construction of three compressor stations located in Podisor, Bibesti and Jupa in Romania.