EBRD Backs Romanian Grid Upgrades

The European Bank for Reconstruction and Development (EBRD) has signed a memorandum of understanding to support the investment programme of Romania's national gas grid operator Transgaz, the latter said on March 4.

Transgaz has approved a 10-year network development programme worth €1.25bn ($1.4bn). Its investment plans involve upgrading and replacing Romania's domestic network, in order to provide access to more end users, and improve the security and diversity of supply. It will also work with neighbouring states to develop new interconnectors and collaborate in research and development projects to make gas environmentally cleaner.

Under the document, the EBRD will consider helping to finance the programme, using debt and equity instruments. The bank earlier granted Transgaz a leu 278mn ($64.4mn) loan for the BRUA project, aimed at developing a pipeline from Bulgaria through Romania and Hungary to Austria. It has also expressed interest in funding construction of a pipeline from Romania's border to Moldova's capital Chisinau. Both projects are designed to export Romanian gas.