The European Investment Bank (EIB) is lending EUR 50 million to Transgaz, the national gas transmission company of Romania, to finance the construction of a new European gas transmission corridor to increase security of gas supply and to reduce energy dependence by making it possible to diversify gas supply routes and sources.
This action was announced by The Romania Journal here.
The new pipeline represents the first phase of the Romanian section of the gas pipeline from Bulgaria to Austria via Romania and Hungary (BRHA). The Transgaz-Brua Gas Interconnection project, estimated to cost over EUR 500m, has been awarded a grant of EUR 179 million by the European Commission under the Connecting Europe Facility (CEF).
”This strategic project 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. It will have a significant impact on employment, creating some 4 000 to 5 000 jobs during the construction phase and 300 to 400 positions during the pipeline’s operation,” Andrew McDowell EIB Vice President stated.
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.
”The finance contract Transgaz signed with the European Investment Bank today explicitly indicates that we are committed and that the optimal conditions for construction of the BRHA project in Romania are in place under the agreed terms. The European Investment Bank has confidence in Transgaz’s ability to successfully complete such a significant project for the development of the EU’s gas transmission infrastructure. We expect this financing to have a positive impact both in terms of achieving local and national synergies for the construction and operation of the pipeline and in boosting confidence and solidarity among the European countries set to benefit from the BRHA project,” Ion Sterian Transgaz General Director stated.