"Transgaz" has 14.5 million Euros available for Nabucco

The budget allocated by "Transgaz" this year, for the implementation of the Nabucco project is close to 14.5 million Euros, said Elisabeta Ghidiu, head of strategy, capital markets, communication and corporate relations of "Transgaz". The amount will be used to cover the cost of the works performed in 2010, namely the general design and local design of the pipeline, the amounts payable to consultants, the amounts needed for the day-to-day operations of "Nabucco Gas Pipeline International" GmbH (NIC) and in the local companies of Nabucco.

Mrs. Ghidiu said: "The government decree for providing governmental guarantees for < Transgaz > is needed in order to obtain the funding for the project. According to the project"s schedule, the securing of the financing is expected to be completed by the end of 2011. The government guarantees are needed to allow "Transgaz" to secure its share of the 16.67% of the loans taken out by the NIC".

The loans taken by the NIC will amount to almost 70% of the costs of the "Nabucco" pipeline (which have a total value of around 8 billion Euros). As shareholder, "Transgaz" will need to present government guarantees for its quota of the loans taken by the NIC. 30% of the cost of the Nabucco pipeline will be borne by the shareholders of the developer of the project.

• The Szeged-Arad pipeline, operational this year

Even though the construction has been completed, the gas transport pipeline Szeged-Arad will become operational in 2010, Elisabeta Ghidiu said. The Hungarian natural gas company only needs to obtain the Bilateral Agreement, signed by the governments of Hungary and Romania, and which is scheduled to be signed by their respective parliaments.

• The interconnection with Bulgaria, ready in 2012

The interconnection of the gas transport networks of Bulgaria and Romania is currently in the planning of the execution details stage. According to the official of "Transgaz", in 2010, the company allocated one million lei for this project. The pipeline is expected to be completed in 2012.

Transgaz had a net profit of 189.2 million lei, in Q1 2010, up 30% over the first quarter of 2009. The company"s turnover amounted to 446.7 million lei, meaning a 15% increase.

"Transgaz" has a share capital of 117.7 million lei, divided into shares with a par value of 10 lei. The Ministry of the Economy holds 73.51% of the shares, and the Proprietatea Fund has 14.98% shares. The Minister of the Economy, Adriean Videanu, recently announced that the state intends to sell an additional stake in the company on the Bucharest Stock Exchange, while at the same time retaining its majority shareholder position.