Romania's natural gas transmission company Transgaz [BSE:TGN] said on Friday it signed the order for the start of the construction of the Tuzla-Podisor pipeline that would link the gas resources exploited in the Black Sea offshore project Neptun Deep to the BRUA corridor via the national transmission system.
The Tuzla-Podisor pipeline of 308.3 km in length is a project worth an estimated 500 million euro ($548.4 million), Transgaz said in a press release.
The pipeline is on the list of EU projects of common interest and obtained financing of 85 million euro, with the difference to be covered through a competitive financial mix, Transgaz said.
The Tuzla-Podisor gas pipeline is also necessary for the transportation of the 15 billion cubic meters of natural gas that would come to Romania from the Caspian Sea area, via LNG terminals in Turkey and Greece, Transgaz director general Ion Sterian said.
It is important that the gas infrastructure is completed by the time the exploitation of natural gas from the Neptune Deep offshore block in the Black Sea begins, Sterian added.
The works commencement order comes three months after the signing of gas transmission contracts by Transgaz, OMV-Petrom and Romgaz as a result of the capacity booking procedure for the national transmission system entry/exit point for gas from the Black Sea at Tuzla.
BRUA is a project for a pipeline linking the gas transmission systems of Bulgaria, Romania, Hungary and Austria.
Transgaz's shares traded 1.76% higher at 17.34 lei ($3.82/3.49 euro) as of 1424 CET on Friday on the Bucharest bourse.
(SeeNews, June 16, 2023)
