Transgaz applies for 554 mln euro in EU grants

Transgaz [BSE:TGN] said on Friday that it has applied for EU grants in the amount of 554.3 million euro ($608.6 million) to align the country’s natural gas transmission system (NTS) to EU requirements and Green Deal decarbonisation standards.

Transgaz has committed to the development of Romania’s gas transmission infrastructure through a plan that was revised and approved by the country’s energy regulator, ANRE, with investment projects estimated at approximately 3.2 billion euro, the company said in a statement filed with the Bucharest Stock Exchange.

The amount was requested as non-reimbursable financing from the EU’s Modernisation Fund.

The grant applications were submitted to Romania’s energy ministry for seven non-priority projects related to the development of several pipelines and the increase of the transmission capacity of the NTS.

Through these investments, Transgaz aims to strengthen Romania’s role in the European and regional gas sector while increasing energy security. The company’s development plan for the NTS spans the 2022-2031 period and was revised in 2023.

The Romanian state owns a majority stake of 58.5% in Transgaz, while the remainder is free float on the Bucharest Stock Exchange, BVB.

Transgaz shares traded 0.56% higher at 17.9 lei ($3.98/3.62 euro) as at 1540 CET on Friday on the BVB.

Developed by Codecraftsman