Romanian gas transmission company Transgaz informed its shareholders and investors on Tuesday that it has signed a deal with Austrian Central European Gas Hub AG (CEGH) to cooperate for the establishment of a Romanian Gas Hub, a joint venture to operate the Romanian Virtual Trading Point.
The Cooperation Agreement was signed by Mr. Ion Sterian, Director General, on behalf of Transgaz SA Romania and by Mr. Gottfried Steiner, CEO of Central European Gas Hub AG.
The official announcement says that "subsequent to the conclusion of the Agreement the actions for the incorporation of the new company “Romanian Gas Hub" shall start and it shall provide professional gas hub services for Romania (including trading and ancillary services) and shall become the operator of the Romanian Virtual Trading Point (VTP). Transgaz will hold 51% of the shares, CEGH 49%. Transgaz will nominate the Director General and CEGH the Deputy Director General.
Romania has a geostrategic position, being located on important transmission corridors in between the demanding CE markets and the SEE supply sources. Romania has a pipeline network of over 13,000 km, a high domestic gas production of approx. 10 bcm/year and a gas consumption of approx. 11 bcm/year. The network is operated professionally by Transgaz and it has the best prerequisites for establishing a functioning, liquid and well-accepted gas hub".
The statement says that the "Romanian Gas Hub aims at the construction of a new vision on the gas market, i.e. the construction of an open, liquid, responsible, closely monitored market allowing for the means to support the vulnerable consumers, solely dispatched in order to prevent emergency crises and fully integrated with the European Energy Union. The Hub entails the redesigning of all gas sector activities for a single purpose, particularly to facilitate gas trading to obtain the most effective gas prices at a certain point in time and to ensure quality services. "