The new gas transmission corridor is aimed at increasing security of gas supply and reducing energy dependence by diversifying gas supply routes and sources.
The European Fund for Strategic Investments (EFSI) is supporting the project under the Investment Plan for Europe (IPE).
The new pipeline marks the first phase of the Romanian section of the gas pipeline to be laid from Bulgaria to Austria via Romania and Hungary (BRUA).
The European Commission (EC) has awarded a grant of €179m under the Connecting Europe Facility (CEF) to the Transgaz-BRUA Gas Interconnection project, which is estimated to cost more than €500m.
The EIB funds will be used for the construction of a 478-km natural gas transmission pipeline between Podisor and Recas, besides construction of three compressor stations in Podisor, Bibesti and Jupa in Romania.
Established in 2013, EU finding instrument CEF aims at promoting growth, jobs and competitiveness through targeted investment in infrastructure in Europe.
The CEF also supports the development of interconnected trans-European networks in transport, energy and digital services.
EIB vice-president Andrew McDowell said: “This strategic project implemented under the Investment Plan for Europe will interconnect the South-East and the Central European gas transmission infrastructure and eliminate the dependence of South-Eastern European countries on a single gas supplier.”
“It will improve the security of supply for these countries, opening up access to potentially cheaper gas, and delivering improved price convergence and transparency, consequently reducing consumer vulnerability.”
