Romanian state-owned gas transporter Transgaz (TGN) has reached an agreement with Russian group Gazprom to terminate a direct contract that was valid until the end of 2023.

The respective contract allowed Gazprom to use one of Transgaz’s transit pipelines (T3) to send gas to countries in Western Europe.

The termination of this contract will allow Transgaz to apply the European regulations on the T2 and T3 transmission pipelines that it operates, ensuring the free access of third parties to capacity booking on the T2 and T3 transit pipelines.

“The intense negotiations between the European Commission (DG-ENER), Transgaz SA and Gazprom Export LLC materialized in an Agreement for the termination of the legacy Contract between Transgaz and GPE concluded for the gas transmission through the T3 transit pipeline on the territory of Romania to third countries,” Transgaz announced in a note to investors.

The termination agreement ensures the collection of the remaining amounts to be paid from the legacy contract and it creates the premises for increasing the use of the Romanian gas transmission infrastructure, according to Transgaz.

In related news, Transgaz reported on Monday that its net profit dropped by 34% in 2020 compared to 2019, to RON 230 mln (EUR 47 mln).

The company’s operating revenues from activities that generate profit were 15% lower in 2020, at RON 1.33 bln (EUR 273 mln).

(Photo: Gersymenko/ Dreamstime)

andrei@romania-insider.com