The EBRD buys 25% of Vestmoldtransgaz, a Moldovan subsidiary of Transgaz. The Bank will Invest 20 million Euros in the Ungheni-Chișinău Gas Pipeline
The European Bank for Reconstruction and Development has become a shareholder in Vestmoldtransgaz, the Moldovan subsidiary Transgaz, which owns and operates the Ungheni-Chișinău natural gas transmission pipeline, with the bank taking over 25% of the share capital.
The European Bank for Reconstruction and Development became a partner of Vestmoldtransgaz as a result of fulfilling the previous conditions related to a Subscription Agreement by which the bank undertook to increase the share capital of the Moldovan company by 20 million euros in order to finance the development costs of the Ungheni – Chișinău gas pipeline.
“The Ungheni-Chișinău gas transmission pipeline, which connects the gas network from Moldova to the European Union through Romania, is an important step towards the geographical diversification of Moldova’s energy supply. After investing in a 25% stake in Vestmoldtransgaz, the European Bank for Reconstruction and Development plays a key role in strengthening the country’s energy security and contributing to sustainable economic growth, which benefits everyone,” said the European Bank for Reconstruction and Development Vice President Alain Pilloux.
Established in 2014, Vestmoldtransgaz owns and manages the gas pipeline network in western Moldova and provides gas transportation services in the country. Transgaz took over Vestmoldtransgaz in 2018 through its Moldovan subsidiary Eurotransgaz, for 8.7 million euros.
“The Ungheni-Chișinău pipeline is a strategic project for Romania, for Moldova, for Transgaz, and now for the European Bank for Reconstruction and Development. We managed to complete this investment, thus becoming the first Romanian multinational company in the gas transport sector, with a contribution to regional energy security,” said the general manager of Transgaz, Ion Sterian.
The 120 km long pipeline between Ungheni and Chișinău interconnects the gas transmission systems in Romania and Moldova. The pipeline connects Chișinău with the interconnection pipeline between the eastern city of Iași in Romania and the Moldovan city of Ungheni, located on the border with Romania.
The construction works of the Ungheni-Chișinău gas pipeline started on February 18, 2019. The pipeline has a length of 120 km, and the estimated value of the project is 76 million euros according to the draft expenditure estimates from the project documentation prepared by Transgaz, Romania.