The European Bank for Reconstruction and Development (EBRD) is buying a 25% stake in gas transmission company Vestmoldtransgaz, the operator of the newly built Ungheni-Chisinau natural gas pipeline.
As part of a capital increase in Vestmoldtransgaz, the bank has invested €20m ($23.6m) in the gas pipeline.
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The Ungheni-Chisinau natural gas pipeline is a 120km extension to the existing Ungheni-Iasi gas interconnector, which was originally built in Moldova in 2015.
The 43.2km-long Ungheni-Iasi interconnection project represents the first and only direct gas pipeline connecting Moldova with the EU. It has a maximum transportation capacity of 1.5 billion cubic metres (bcm) of gas a year.
Vestmoldtransgaz was founded in 2014. It owns and manages a gas pipeline network in western Moldova and is a provider of natural gas transport services.
In 2018, Vestmoldtransgaz was taken over by Romanian natural gas transmission system operator SNTGN Transgaz subsidiary Eurotransgaz.
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By GlobalDataSNTGN Transgaz Ion Sterian said: “In March this year, Transgaz and the EBRD signed a Memorandum of Understanding to support investments in the Romanian energy sector.”
The Ungheni-Chisinau pipeline will enable Moldova to ‘diversify’ its energy sources. The country imports 90% of its energy sources.
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 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.”
Since it began operations in Moldova, the EBRD has invested more than €1.3bn ($1.53bn) in 134 projects in the country’s energy, infrastructure, and manufacturing sectors.
