Romanian state-owned gas transporter Transgaz wants to take over Vestmoldtransgaz, the state-owned company in the Republic of Moldova that manages the Iasi-Ungheni pipeline.

Vestmoldtransgaz will be privatized for EUR 180 million. The buyer is also obliged to invest EUR 93 million in the company in the next two years.

The Board of Directors at Transgaz will increase the company’s share capital and will launch the procedures to set up a limited liability company in the neighbouring Republic of Moldova.

The privatization aims to accelerate the extension of the pipeline to Moldovan capital Chisinau, in order to be used at a greater potential, according to analysts. The pipeline connecting the gas transport systems of Romania and the Republic of Moldova was launched in Ungheni in 2014. It was completed in 2015, but it still doesn’t operate at maximum capacity.

The Iasi-Ungheni pipeline should be extended to Chisinau by the end of 2018, Moldovan authorities have announced this year. The volume of gas Romania sells to the Republic of Moldova in the last two years amounts to only 0.2% of the pipeline’s maximum flow.

EIB grants EUR 50 mln loan to Romania’s Transgaz for new pipeline

editor@romania-insider.com