Romania’s Transgaz plans to sell 25% stake in Moldovan subsidiary to the EBRD
Romania’s natural gas transport system operator Transgaz plans to sell a 25% stake in its 100% owned Moldovan subsidiary, Vestmoldtransgaz, to the European Bank for Reconstruction and Development (EBRD), according to notes from Transgaz' extraordinary general meeting of shareholders.
The transaction consists of a capital increase for Vestmoldtransgaz to which the EBRD will contribute €20mn.
The money will thus remain in the Moldovan company while Romania’s state-owned Transgaz will reduce its stake.
The EBRD said at the end of 2019 that the bank's investment in Vestmoldtransgaz will fund the construction of the Ungheni-Chisinau natural gas pipeline in Moldova. The total cost of the project is €90mn.
The project is part of the EU-promoted connection of the gas transmission systems of Romania and Moldova by linking Chisinau to the interconnector between the eastern Romanian city of Iasi and Ungheni, a Moldovan town on the Romanian border.
The connection will enhance Moldova's energy security by diversifying its gas supply sources.