The Romanian government is set to approve funding of RON 500 million (EUR 100 mln) for several investment projects by the state-owned company Transgaz (BVB: TGN), the national gas transport system operator, Profit.ro reported. 

This funding, sourced from the Environmental Fund financed by the sale of CO2 emission certificates allocated to Romania by the EU, will support the rehabilitation and expansion of the gas transport network. 

The decision follows a recent emergency ordinance to include these Transgaz projects among those eligible for financing from the Environmental Fund. The move aims to strengthen critical national infrastructure and support the transition from coal to natural gas, a key element in Romania's decarbonization strategy. 

The government emphasized that these investments meet EU state aid guidelines and are crucial for the nation's energy infrastructure. 

Despite the EU's growing reluctance to fund natural gas projects, citing restrictive approvals from the European Investment Bank and the European Commission, Romania has pushed forward with domestic funding to ensure the completion of these vital projects. 

In November 2023, Ion Sterian, Transgaz's CEO, expressed disappointment over the EU's refusal to finance over half a billion euros in pipeline construction projects, stressing the importance of these projects for future gas and hydrogen plants.

andrei@romania-insider.com

(Photo source: Inquam Photos/George Calin)