Transgaz, the national gas transmission firm in Romania, will use the funds from the European Investment Bank (EIB) to build a 478km pipeline between Podisor and Recas and three compressor stations located in Podisor, Bibesti and Jupa.
It is the first phase of the Romanian section of the €500 million (£442m) Transgaz-Brua Gas Interconnection project from Bulgaria to Austria via Romania and Hungary.
The European gas transmission corridor aims to increase security of supply and reduce energy dependence by making it possible to diversify gas supply routes and sources.
EIB Vice President Andrew McDowell said: “This strategic project implemented under the Investment Plan for Europe will interconnect the South East and the Central European gas transmission infrastructure and eliminate the dependence of South-Eastern European countries on a single gas supplier.
“It will improve the security of supply for these countries, opening up access to potentially cheaper gas and delivering improved price convergence and transparency, consequently reducing consumer vulnerability.”