EIB offers €50m loan for gas pipeline project

WCN Editorial Team 31 Oct 2017 EUROPE ENERGY & UTILITIES

The European Investment Bank (EIB) has offered a loan of €50m to Romanian national gas transmission firm Transgaz for the construction of a new gas transmission corridor in Europe.

The loan will fund the construction of a 478km natural gas transmission pipeline between Podisor and Recas, as well as three compressor stations in Podisor, Bibesti and Jupa in Romania.

The pipeline marks the first phase of the Romanian section of the gas pipeline, which will stretch from Bulgaria to Austria via Romania and Hungary (BRUA).

The Transgaz-BRUA Gas Interconnection project, which will entail an investment of over €500m, has already obtained €179m from the European Commission (EC).

EIB vice president Andrew McDowell said: “This strategic project implemented under the Investment Plan for Europe will interconnect the South-East and the Central European gas transmission infrastructure and eliminate the dependence of South-Eastern European countries on a single gas supplier.

“It will improve the security of supply for these countries, opening up access to potentially cheaper gas, and delivering improved price convergence and transparency, consequently reducing consumer vulnerability. It will have a significant impact on employment, creating some 4 000 to 5 000 jobs during the construction phase and 300 to 400 positions during the pipeline’s operation.”

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