New Funding from Modernization Fund for Transgaz

The Minister of Energy Sebastian Burduja and the Director-General of Transgaz Ion Sterian signed the financing contract for ‘Increasing the transmission capacity of the National Transport System (NTS) and the security of natural gas supply of the Isalnita Electrocentrale Branch (Dolj County) and the Turceni Electrocentrale Branch (Gorj County)’.

The financing is provided by the Modernization Fund and amounts to approximately EUR 8.5 million.

The project carried out by Transgaz has a total value of RON 143,601,585.81 (EUR 28,850,722.43), and the amount of financing from the Modernization Fund is RON 42,131,102.75 (EUR 8,464,480.00).

“By signing this financing contract, Transgaz reaffirms its firm commitment to continue to develop, modernize and expand the natural gas transmission infrastructure using grants. The project ensures the supply of natural gas necessary to produce base load power for the two gas-fired power plants, 850 MW Isalnita and 475 MW Turceni, and is also part of the decarbonization process undertaken by Romania,” the Director-General of Transgaz Ion Sterian stated.

“We reiterate on this occasion once again the firm message addressed to the new leadership of the European Commission and to the commissioners responsible for the environment, climate change and energy to take into account that security of supply, diversification of energy sources, reducing energy prices and combating climate change all have a common denominator: natural gas and natural gas transmission infrastructure. Only by ensuring a significant level of funding for the natural gas transmission infrastructure, ready for green hydrogen, can the prerequisites for reindustrialization, decarbonization, lower energy prices and an increase in the quality of life of the population be ensured. By this investment, Transgaz achieves two more major objectives: increasing the security of natural gas supply for the South-East of Romania and creating the necessary conditions for the connection of the region’s localities to the National natural gas Transmission System, these developments of course allowing the supply of other domestic and industrial consumers in the area. The gas transmission pipelines to be constructed by Transgaz, CCGT Isalnita connection pipeline (Dolj county) – 0.610 km, TN Hurezani – TN Turburea gas transmission pipeline (Gorj County) – 24.165 km and Tantareni – Turceni gas transmission pipeline (Gorj County)- 11.055 km, have a total length of over 35.5 km, a DN 500 diameter and are designed for a pressure of 40 bar. They will cross two counties, allowing the connection to the natural gas network of 12 localities, meaning more than 42,000 citizens, 15,500 households, 82 educational establishments, 24 places of worship, 22 medical establishments and 11 cultural centres. This means improved quality of life for citizens and real opportunities for sustainable development for the local and national economy,” Ion Sterian detailed.