By Andra Beltz
The National Gas Transport Company in Romania, Transgaz, submitted an offer for the acquisition of Vestmoldtransgaz state-owned company in Moldova.
Vestmoldtransgaz is the Moldavian operator of the Iasi-Ungheni gas pipeline,
The offer was accepted by the Chisinau authorities, according to the specifications.
According to an announcement of the Moldovan Public Property Agency, quoted by Radio Chisinau, the initial sale price of Vestmoldtransgaz is 180 million lei (Moldovan). The buyer will be required to invest 93 million euros in the company for the first two years after its takeover.
At the same time, according to the Ministry of Economy and Infrastructure in Chisinau, on December 18, Transgaz established a subsidiary in Moldova called EuroTransgaz. The founding document shows that the main business activities of the new economic agent are the production, transport, distribution, storage and supply of natural gas, pipeline transport, warehousing, and business and management consulting activities.
"The new enterprise is the representative of the Romanian Transgaz Joint Stock Company, which participates in the realization of the gas interconnection project between the Republic of Moldova and Romania, including the extension of the Iasi-Ungheni gas pipeline to Chisinau, which is to be put into operation by the end of the year 2018 ', according to a press release from the Ministry of Economy and Infrastructure of the Republic of Moldova.
On December 12, the Extraordinary General Meeting of Transgaz Shareholders approved the establishment of a company in Moldova to participate in the privatization procedure of Vestmoldtransgaz, a document published on the Bucharest Stock Exchange (BVB) ).
The launch of Vestmoldtransgaz's privatization process aims at accelerating the expansion of the Iasi-Ungheni pipeline to Chisinau and increasing pipeline capacity. In August 2014, gas pipeline between Romania and the Republic of Moldova was launched in Ungheni, and in December 2014 was the final gas pipeline reception. The pipeline linking the natural gas transmission systems in Romania and the Republic of Moldova was completed in 2015 but still does not work at full capacity. Moldovan authorities have announced this year that the extension of the Iasi-Ungheni gas pipeline to Chisinau is scheduled to be completed by the end of 2018 compared to May 2018, which was the original term.
In the first nine months of this year, Transgaz registered a net profit of 433,552 million lei, up 21% over the one obtained in the same period in 2016, of ROL 358,469 million.