Transgaz Applying for Funding from the Modernization Fund: Strategic Projects worth EUR 336mn

Transgaz has submitted to the Ministry of Energy five strategic investment projects in order to access funding from the Modernization Fund. The total value of the projects is EUR 336.7 million, of which EUR 207.2 million has been requested for reimbursement.

The projects submitted by the company target:

• Upgrade of the Podisor and Bibesti compressor stations to increase the transmission capacity in the National Transmission System for natural gas supply to the combined cycle power plants in Mintia, Isalnita and Turceni, including the territorial administrative units and other industrial consumers in the area.

The total value of the investment project is EUR 55,519,225.07, the total eligible value is EUR 52,582,356.65, and the amount requested from the Modernization Fund is EUR 36,807,649.65.

• Upgrade of the Jupa compressor station and construction of the natural gas transmission pipeline on the TN Recas – TN Horia route to increase transmission capacities and security of natural gas supply in western Romania.

The total value of the investment project is EUR 100,211,123.80, the total eligible value is EUR 95,109,162.14, and the amount requested from the Modernization Fund is EUR 66,576,413.50.

• Romania-Serbia interconnection – interconnection of the National Natural Gas Transmission System with the similar natural gas transmission system in Serbia. The project involves the construction of a new natural gas transmission pipeline that will connect the BRUA natural gas transmission pipeline and the Mokrin Technological Node in Serbia, as well as a gas metering station. The length of the pipeline on Romanian territory is approximately 85 km, with a diameter of DN 600, a pressure in the pipeline of 50-54 bar and a transmission capacity of maximum 1.6 billion Scm/year (183,000 Scm/h), both in the Romania-Serbia direction and in the Serbia-Romania direction. On the territory of Romania, the infrastructure created offers the possibility of supplying natural gas to the localities along the pipeline route.

The total value of the investment project is EUR 103,985,226.16, with a total eligible value of EUR 96,332,846.45 and the amount requested from the Modernization Fund being EUR 67,432,992.52.

• Gas transmission pipeline on Ghergheasa – Focsani direction (including fibre optics and power supply to SPC). The project consists of the construction of a DN 250 x 40 bar gas transmission pipeline with a total length of 68.0 km between the connection point to the existing DN Silistea-Bucharest pipeline, in the locality of Boldu, territorial administrative unit Boldu, Buzau County, and the RMS Focsani.

The total value of the investment project is EUR 38,537,182.69, the total eligible value is EUR 24,415,829.25, and the amount requested from the Modernization Fund is EUR 17,091,080.47.

• Huedin-Lugasu natural gas transmission pipeline (including power supply, cathodic protection, and fibre optics). The investment involves the construction of a new DN 400 x 50 bar gas transmission pipeline between Huedin and Lugasu over a length of 70.040 km, which will have one end in the territory of the commune of Poieni, where it will be connected to the existing DN 400 x 50 bar Aghiresu – Huedin pipeline, and the other end will be in the commune of Lugasu de Jos, where it will be connected to the existing DN 400 x 40 bar Biharia-Lugasu pipeline. The construction of this pipeline will ensure the supply of natural gas to the localities in the area of interest, namely approximately 32,800 household consumers and 127 public institutions (schools, town halls, dispensaries, community centres, medical offices etc.), as well as various economic operators in Bihor County, namely approximately 13,000 household consumers, 47 public institutions (schools, town halls, dispensaries, community centres, medical offices etc.) and various economic operators in Cluj County.

The total estimated value is EUR 38,537,182.69, the eligible value is EUR 27,563,005.68, and the amount requested from the Modernization Fund is EUR 19,294,103.98.

The Modernization Fund (MF), managed in Romania by the Ministry of Energy, amounts to EUR 15 billion for the period 2021-2030, which Romania will invest to modernize, streamline, and secure the energy system, but also to achieve the climate targets set for 2030.

The MF consists of revenues obtained from auctioning 2% of EU greenhouse gas (GHG) emission allowances for the period 2021-2030, with Romania allocated 11.98% of the total 2%.