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Worth EUR 50 million is going to be granted to Transgaz on behalf of the European Investment Bank (EIB)
A first loan in lei (Romania's national currency, ed. n.) worth EUR 50 million is going to be granted to Transgaz on behalf of the European Investment Bank (EIB) on Thursday announced the bank, in a press release.
The EIB funds will finance the construction of a new European natural gas transport corridor (BRUA) so to increase the gas supply security and cut the energy dependence, by diversifying the sources and the supply routes.
It is the first EIB loan in lei to a company since the launch of the bank's operations in Romania in 1992. The credit will offer Transgaz a bigger flexibility to avoiding exchange rate's risks in financing the region's gas infrastructure. The project is aimed to contribute to the increase of the number of gas suppliers in South-Eastern Europe and open the regional market to an increased competition, the EIB Vice President Andrew McDowell says.
"To our company, this financing line is part of a set of key-measures we count for our large infrastructure projects," the SNTGN Transgaz SA managing director Ion Sterian says.
The new pipeline is the first stage of the BRUA pipeline's Romanian section. The Transgaz-Brua Gas Interconnection project the costs of which are estimated to over EUR 500 million, has received a EUR 179 million on behalf of the European Commission within the Europe's Connection Facility.
The EIB funds will finance the construction of a 478-km natural gas pipeline between Podisor and Recas, as well as of three compressor stations at Podisor, Bibesti and Jupa, all of which on Romanian territory.