Romanian state-owned gas transporter Transgaz Medias won the tender for the privatization of Moldova’s state owned Vestmoldtransgaz, the company that operates the pipeline connecting the country to Romania’s gas transport system.

Moldovan prime minister pavel Filip made the announcement on Tuesday during a meeting with Romanian PM Viorica Dancila, who made an official visit to Chisinau.

The Moldovan authorities hope this privatization will help the country diversify its gas sources.

Vestmoldtransgaz operates a gas pipeline that allows the import of gas from Romania. The company plans to extend the pipeline from the town of Ungheni, at the border with Romania to the capital Chisinau. The Moldovan government set an asking price of some EUR 8.8 million for Vestmoldtransgaz but the company’s new owner also has to invest EUR 93 million in the new pipeline.

This is the second important investment by a Romanian company in Moldova after Banca Transilvania’s purchase of Victoriabank, the third largest lender in the country.

Romania’s gas network operator slightly ups profit

editor@romania-insider.com