Romania's natural gas transport system operator Transgaz signed with a Turkish construction company the works commencement order for the execution of the Tuzla-Podisor gas pipeline, a EUR 500 million project aimed to bring natural gas from offshore Black Sea perimeters to the BRUA corridor.

The works commencement order comes three months after Transgaz signed on March 16 the capacity booking contract with OMV Petrom and Romgaz for the entry/exit point of Tuzla, where the natural gas from the Black Sea (Neptun Deep) will enter the national transport system - NTS.

"We are witnessing a historic event," Transgaz CEO Ion Sterian said at the signing ceremony with the Turkish constructor.

Kalyon Insaat Sanayi Ve Ticaret Anonim Sirketi of Turkey will build the 300 km-long pipeline for some EUR 500 mln.

The "Black Sea-Podisor natural gas transmission pipeline" project is included in the NTS 10-year Development Plan, in the list of EU projects of common interest and has been submitted for funding through the Modernisation Fund, obtaining financing of EUR 85 mln. A competitive financial mix will cover the funding gap.

iulian@romania-insider.com

(Photo source: Inquam Photos/George Calin)