S.N.T.G.N. Transgaz S.A. — Capital/Financing Update 2018

Dec 18, 2018

18 December 2018

RELEASE

Today, 17 December 2018, the European Investment Bank (EIB) and the National Gas Transmission Company Transgaz S.A signed, in Luxemburg, the contract for the first tranche of Euro 50 million of the loan approved for Transgaz amounting to Euro 150 million. On behalf of EIB the contract was signed by the Vice-President, Andrew McDowell and on behalf of Transgaz by the company's Director General, Ion Sterian.

The European Investment Bank (EIB) is lending EUR 50 million to finance new pipeline that will link the gas sources available at the Black Sea shore and the natural gas transmission corridor Bulgaria–Romania– Hungary–Austria (BRUA). This will connect the gas transmission systems of South-East Europe and Central and Western Europe. This transaction is backed by the European fund for Strategic Investments (EFSI), the financial pillar of the Investment Plan for Europe or the "Juncker Plan".

EIB's Vice President, Andrew McDowell and the Vice President of the European Commission in charge of the Energy Union, Maroš Šefčovič, welcomed the financial support granted to Transgaz by EIB for the developemnt of the national gas transmission infrastructure.

Highlighting both the importance of the investment project for Romania's energy security and the diversification of gas supply sources in the region as well as the significant importance of EIB's financing such project, Ion Sterian, Transgaz' Director General stated:

"The fruitful cooperation between the European Investment Bank and Transgaz aims at ensuring financing for the company's investment projects, i.e. strategic investments facilitating the achievement of the European Union's goals for the sustainable and competitive development of gas transmission infrastructure, the diversification of gas supply sources, and the strengthening of energy security and solidarity. Last year, the EIB signed two financing contracts with Transgaz, worth EUR 50 million each, for the implementation of the first phase of the project of common interest (BRUA). It is of strategic importance for Black Sea produced gas to be incorporated into the National Gas Transmission System and transported to the Romanian and EU markets so as to increase the security of gas supply to Romania and the EU and to safeguard the security of gas supply for Romanian consumers. The financial support of the EIB will contribute significantly to the extension of the national gas transmission infrastructure."

Transgaz is the sole technical operator of the National Gas Transmission System (NTS) and ensures the achievement of the national strategy goals for internal and international gas transmission, dispatching, research and design, in conditions of efficiency, transparency, safety, non-discriminatory access and competitiveness, in line with the Romanian and European applicable laws, and with the quality, performance, environmental and sustainable development standards.

EIB's Press release is availabe at:

http://www.eib.org/en/infocentre/press/releases/all/2018/2018-351-investment-plan-for-europe-eibsupports-extension-of-romanias-natural-gas-transmission-infrastructure.htm