Transgaz Plans 480 Mio EUR Investments By 2020

National gas transportation company Transgaz SA has planned investments worth 480 million EUR for 2007 - 2020, according to Elisabeta Ghidiu, Head of Investors, Shareholders and Capital Markets Relations of Transgaz.

"We have budgeted 225 million EUR for the rehabilitation of the gas transportation system between 2008 and 2013. The modernization and development of the pipe network has a budget of 248 million EUR for 2008 - 2013. Among the important short-term investment objectives we have the interconnection of the national grid with the corresponding grids of the neighbouring countries, the reduction of technological consumption, the Nabucco Project and other measures to ensure national energy security," Ghidiu added.

The most advanced interconnection project consists of a pipeline between Szeged, Hungary, and Arad, Romania, which is scheduled for commissioning in the beginning of 2010. The Hungarian counterpart has finalized tenders for capacity reservation, whereas the winners of such tenders have started talks for concluding transit partnerships and for a frame agreement with Transgaz for bringing the gas into Romania. For the time being, Transgaz does not have any orders to export gas to Hungary.

Romgaz officials said they were contemplating the possibility of exporting gas to Hungary via the Szeged - Arad pipeline, if opportunity emerged and surplus existed. However, Romgaz CEO Marcel Piteiu said: "Personally, I don"t think that Romania will export gas anytime soon. We need a complete price deregulation for that."

The second most advanced project of Transgaz consists of an interconnection with Bulgaria via a pipeline between Giurgiu, Romania, and Rousse, Bulgaria. The two countries have submitted the documentation required for obtaining European financing and are currently having commercial talks. The feasibility study has been updated and Transgaz has announced intent to budget the funds required for the project start-up in 2010.