Romania terminates historical contract with Gazprom

The historical contract for gas transport through the T3 transit pipeline on Romania’s territory to third countries, concluded with Gazprom Export LLC (GPE), which was valid until December 31, 2023 has ceased before expiry by agreement of the parties , Transgaz has announced in a press release today. According to the announcement, the Romanian party will not suffer financial losses.

Romanian state company Transgaz said in a report to Bucharest Stock Exchange (BVB) that the decision to terminate the contract with Gazprom had been taken in the view of enforcing the European rules on the T2 and T3 gas transport pipelines and and in order to seal new connection agreements with the adjacent transport operators for the new pipelines.

“The intense negotiations between the European Commission (DG-ENER), SNTGN Transgaz SA and Gazprom Export LLC have ended in a an agreement of terminating the historical contract between SNTGN Transgaz SA and GPE  concluded for the transport of natural gas through the transit pipeline T3 on Romania’s territory to third countries”, says the press release.

The Romanian company argued that “this Agreement is particularly important, as, on one hand, it creates the premises to enforce the European regulatory framework for the reservation of the natural gas transport capacity through the T2 and T3 transit pipelines, and, on another hand, it provides the protection of the Transgaz’ financial interests that derived from the historical contract of natural gas transport through the T3 pipeline”, reads the press release.

“The agreement to terminate the historical contract between SNTGN Transgaz SA and Gazprom Export LLC provides the necessary framework to cease the interconnection agreements for the Interconnection Points Isaccea 2,3 and Negru Vodă/Kardam 2,3, the enabling free access for the third countries to reserve the capacity on the T2 and T3 transit pipelines allows cashing in the sums to be paid from the historical contract and creates the premises the increase in the level of use of the natural gas transport infrastructure from Romania”, Transgaz mentions.