Romania’s Transgaz to Build $529 Million Gas Pipeline for Black Sea Gas

The gas pipeline is meant to bring offshore Black Sea gas to the national grid once two gas producers make a final investment decision, Prime Minister Nicolae Ciuca said on Thursday.

(Reuters) — Romania's gas pipeline operator, Transgaz, will build a new pipeline worth an estimated 500 million euros ($529.30 million). The gas pipeline is meant to bring offshore Black Sea gas to the national grid once the two gas producers make a final investment decision, Prime Minister Nicolae Ciuca said on Thursday.

Romanian oil and gas group OMV Petrom, majority controlled by Austria's OMV, and state-owned Romgaz are expected to make a final decision to invest in a long-awaited offshore project by mid-2023. The project is estimated to cost 4 billion euros and produce at least 6 Bcm of gas per year.

"We are readying the transport infrastructure (for the project)," the prime minister said. "Transgaz has signed the contract, with ... works set to start after a final investment decision is made."