Romgaz acquires 20% of Gastrade, the Greek owner of the LNG Alexandroupolis terminal

By Jerom Bolt
The shareholders of Romgaz (SNG), the largest natural gas producer in Romania, have approved the acquisition of a 20% stake in Gastrade shares for the sum of 12.5 million euros, according to a statement issued by the Bucharest Stock Exchange (BVB). Romgaz will pay 5 euros/share for 79,000 shares, a stake that will provide 20% of the future gas terminal.
The Greek company Gastrade is the sole promoter and owner of the project for the construction of an offshore liquefied natural gas (LNG) terminal in Alexandroupolis, a city in the Aegean. In addition to the initial investment, Romgaz will contribute its own funds in the amount of 12.5 million euros to the construction costs, which are estimated, in total, with European funding, at just over 370 million euros.
In addition to approving in principle the transaction for 20% of Gastrade, Romgaz shareholders also approved the purchase of legal consulting, assistance and / or representation services for participating in the gas terminal project.
The construction of the terminal is conditional on obtaining a derogation from the European regulations regarding the common rules for the internal market in the natural gas sector, the company shows in a document.
In addition to Romgaz, the Greek gas operator DEPA and the Bulgarian gas operator Bulgartransgaz would purchase 20% of the project’s shares from the founding shareholder of Gastrade, the entrepreneur Eleni-Asimina Copelouzos. The negotiations with neighboring gas carriers have already been finalized by Gastrade as of June 13, 2019. Gaslog Cyprus Investment Ltd, a wholly owned subsidiary of Gaslog Ltd, which is listed on the New York Stock Exchange, would also have one. a 20% stake.
Romgaz also notes in the mentioned analysis that the documents and studies provided by Gastrade show the existence of strategic advantages for Romgaz in the region, as well as a potential for profit for Romgaz shareholders.
The project is a “project of co-mmon interest”, that is a cross-border infrastructure project linking the transport systems of the EU countries, which aims to support the diversification of gas supply sources and routes, being included by the EC in the third list. of projects of common interest (2017-2019), according to the document.
The start date of the construction of the terminal is estimated for 2020, with commissioning for the end of 2021.
The Romanian state, through the Ministry of Energy, owns 70% of Romgaz.