The European Bank for Reconstruction and Development (EBRD) said it is acquiring a 25% stake in Vestmoldtransgaz, the Moldovan subsidiary of Romania’s natural gas transport system operator Transgaz.
"We are confident that this transaction will contribute to the long-term development of the gas transmission sector in Moldova," Transgaz CEO Ion Sterian said.
Founded in 2014, Vestmoldtransgaz owns and manages a gas pipeline network in western Moldova and provides natural gas transport services.
The 120 km Ungheni-Chisinau gas pipeline will soon become operational and complete the connection of the gas transmission systems of Romania and Moldova by linking the capital Chisinau to the Iasi-Ungheni interconnector between the eastern Romanian city of Iasi and Ungheni, a Moldovan town on the Romanian border, the EBRD 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," EBRD vice president Alain Pilloux said.
On Monday, Transgaz said it will ask its shareholders to approve the sale on October 5.
Transgaz bought Vestmoldtransgaz through Eurotransgaz in September 2018 for for 180.2 million Moldovan lei ($10.9 million/8.8 million euro).
Transgaz shares traded 0.34% lower at 295 lei ($70/59 euro) on the Bucharest Stock Exchange by 1201 CET on Friday.
(SeeNews, August 28, 2020)
