The Transgaz National Gas Transport Company is running a number of nine development projects worth 1.62 billion euros by 2026, said on Monday the general manager of the company, Ion Sterian, on the occasion of the 10th anniversary of the listing of Transgaz on the Bucharest Stock Exchange (BVB).
“Seven of the projects are within the country, and two projects are international and can turn Transgaz into the first Romanian company with majority state capital in a multinational one at regional level. We will become one of the four-largest companies of this type in Europe,” said Sterian.
Sterian reminded that Transgaz filed an offer on December 28, 2017 to buy Vestmoldtransgaz, the Moldovan gas transmission company that is involved in the construction of the Iasi-Ungheni-Chisinau gas pipeline. “This week or the next one at the latest the privatization commission will announce the outcome, we hope we will be the winners,” he added.
Sterian also said that, once declared winner, Transgaz will build the Ungheni-Chisinau gas pipeline, where he hopes Romanian gas will get in 2019.
Also abroad, Transgaz has submitted a letter of interest to participate in the acquisition of a 66% stake in DESFA in Greece alongside the Spanish company Reganosa and on February 16 the consortium will submit the offer to buy the package.
“These projects are not just Transgaz’s, but Romania’s and Europe’s,” said Transgaz official.
Another major project developed by Transgaz is the first phase of the BRUA gas pipeline, which will link Bulgaria, Romania, Hungary and Austria. The pipeline will have a length of 570 kilometers and will have three 10 MW compressing stations each and a capacity of 1.75 billion cubic meters per year in bi-directional flow.
The second part of the BRUA project will ensure the transport of gas volumes from the Black Sea to Central Europe. The estimated costs stand at 69 million euros, and the deadline for completion is 2020. The project aims to increase the BRUA capacity from 1.75 billion to 4.4 billion cubic meters per year to Hungary and the expansion of compressing stations.
BRUA will also have its third phase worth 530 million euros, which will be ready in 2023 and aims at rehabilitating and replacing pipelines from the national gas transportation system and developing 4 or 5 new compressing stations.
Other Transgaz projects relate to new developments for the take-over of gas from the Black Sea, worth more than 280 million euros.
“The gas coming from the Black Sea is primarily destined for Romanian consumption, which I want to grow. It is not true that the gas will have a direct export destination,” Sterian said.
He recalled the project in collaboration with ExxonMobil, which is on schedule but also with Black Sea Oil and Gas, which will begin production of Black Sea gas in the middle of 2019. As for the Neptun Deep project, ExxonMobil and OMV Petrom will take this year’s final investment decision.
Other projects of Transgaz are aimed at developing pipelines in the country, such as those in the northeast, as well as the modernization of Isaccea and Negru Voda measuring stations, as well as interconnection with Serbia, which will be ready in 2026 and requires 43 million euros.
Bucharest Stock Exchange’s Anghel: Gov’t can request EU facility to cover 50% of companies’ listing costs
The Government has the possibility to apply for a European Regional Development Fund (ERDF) facility from the European Union (EU) in order to cover 50% of the companies’ listing costs, the Bucharest Stock Exchange (BVB) Chairman Lucian Anghel said on Monday.
“An idea would be the possibility for the Romanian companies to access a charge from the European Regional Development Fund, the” Support for SMEs” axis, which would encourage entrepreneurs to finance the growth of local companies through the stock exchange. It will be able to support companies interested in listing by offering a unique repayment rate to cover up to 50% of the issue costs of shares or bonds through the capital market,” Anghel said at the official opening of the trading session dedicated to the anniversary of a decade since the listing of Transgaz on the main market of the BVB.
According to him, such a program of European funds has been working successfully for many years in Poland.
“The Government could request this facility offered by the European Union, which would provide additional support for Romanian companies that through this could have more access to capital and finance the economic growth, job creation, investment and what is transferred to welfare for Romanians,” the BVB official said.