The European Bank for Reconstruction and Development (EBRD) is strengthening Moldova’s energy security with the acquisition of a 25 per cent stake in Vestmoldtransgaz, the gas transmission company that is operating the newly built Ungheni-Chisinau gas pipeline, the EBRD says in a press release that is quoted by IPN.
EBRD Vice President Alain Pilloux said this connection will enhance Moldova’s energy security by diversifying its gas supply sources, a prerequisite for the country’s successful development.
The EBRD provided support to Vestmoldtransgaz for the environmental and social component of the Ungheni-Chisinau project, making sure that the highest standards were met.
We are confident that this transaction will contribute to the long-term development of the gas transmission sector in Moldova.”
Founded in 2014, Vestmoldtransgaz owns and manages a gas pipeline network in western Moldova and provides natural gas transport services. In 2018 it was taken over by Eurotransgaz, a subsidiary of SNTGN Transgaz, the company operating the Romanian natural gas transmission system.
Ion Sterian, CEO of SNTGN Transgaz, said that in March this year, Transgaz and the EBRD signed a Memorandum of Understanding to support investments in the Romanian energy sector.
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 construction of the €90 million pipeline has also been supported by a €38 million loan from the European Investment Bank (EIB) and an equity investment from Eurotransgaz.
