39.2 C
Bucharest
July 12, 2024
Valahia.News
Image default
Business Economy International Business International News Romanian News

Romanian Transgaz Takes Over Gas Operations in the Republic of Moldova

Romania’s gas transmission company Transgaz [BSE: TGN] said on Tuesday, September 5, that it signed a tenancy agreement whereby it takes over the activity of operating, exploiting, dispatching and transmitting gas in neighbouring Moldova from the local operator Moldovatransgaz, starting 19 September 2023, Seenews reports.

Majority state-owned Transgaz, one of the top companies in Romania, signed the agreement through its Moldovan subsidiary Vestmoldtransgaz, which operates the Ungheni-Chisinau gas pipeline and is certified on the ownership unbundling model, the company said in a press release.

Vestmoldtransgaz’s action follows Moldovatransgaz’s failure to comply with the unbundling requirements, which led to the modification of the legislative framework in Moldova to ensure the country’s energy security and alignment with the European regulatory framework, Transgaz said.

Ensuring the separation and independence of natural gas transmission system operators from vertically integrated companies that produce, distribute, store, trade or supply natural gas is one of the primary objectives for creating a liberalized natural gas market in the Republic of Moldova. With this initiative, Transgaz continues its strategic presence in the Republic of Moldova, contributing to ensuring the strategic interests of the region.

Ion Sterian, General Director at Transgaz

Thus, following Moldova’s legal provisions for the next five years, Vestmoldtransgaz will become the sole licensed operator for the provision of the public gas transmission service on Moldova’s territory, Transgaz said.

Last winter, in December 2022, Transgaz started gas exports to the Republic of Moldova through the Iasi-Ungheni pipeline. At that time, Romania ensured 90% of the internal gas consumption in the Republic of Moldova.

Last month, Transgaz said that its consolidated net profit for the first six months of 2023 fell by an annual 60% to 70.8 million lei ($15.4 million/14.3 million euro). The Romanian state owns a stake of 58.5% in Transgaz, while the remainder is in free float on the Bucharest Stock Exchange.

Transgaz shares traded 1.9% lower at 16.56 lei as at 1215 CET on Tuesday on the Bucharest Stock Exchange.

Leave a Comment