London-based bank buys 25% stake in Transgaz subsidiary

The European Bank for Reconstruction and Development is investing €20m in Vestmoldtransgaz, the gas transmission company operating the newly-built Ungheni-Chisinau gas pipeline

The European Investment Bank for Reconstruction and Development (EBRD) has bought a 25% stake in Vestmoldtransgaz, the Moldovan subsidiary of Romania’s natural gas transport system operator Transgaz.

Under the deal, the EBRD is investing €20 million (£18.5m) in Vestmoldtransgaz, the gas transmission company operating the newly-built Ungheni-Chisinau gas pipeline.

The 120km gas pipeline is expected to become operational soon, completing the connection of the gas transmission systems of Romania and Moldova.

This will enable the latter company – which is more than 90% dependent on energy imports – to diversify its energy sources.

Alain Pilloux, EBRD Vice President said: “This connection will enhance Moldova’s energy security by diversifying its gas supply sources, a prerequisite for the country’s successful development.

“The project also helps integrate Moldova into future major gas infrastructure projects such as the Trans Adriatic Pipeline and gas sources from central European hubs and links it with Black Sea gas deposits. Greater integration will deliver economic benefits for consumers.”

The construction of the €90 million (£83m) gas pipeline has also been supported by a €38 million (£35m) loan from the European Investment Bank (EIB) and an equity investment from Eurotransgaz.

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