Transgaz intends to become a shareholder in US company Argent LNG, the developer of a liquefied natural gas (LNG) export terminal in Louisiana, under a Memorandum of Understanding signed by the two companies.
‘The Memorandum of Understanding signed today [Thursday] establishes a non-binding framework for the parties to explore, structure and negotiate the terms of this equity investment. Transgaz has expressed its intention to become a shareholder in Argent LNG, alongside other major American companies. For Transgaz, the investment reflects a strategic interest in securing long-term access to U.S. LNG supply and in holding a direct stake in the company overseeing the broader Argent LNG development platform,’ a Transgaz release sent to the Bucharest Stock Exchange (BVB) mentioned.
According to the quoted source, the investment’s main objectives are to facilitate the transmission of LNG from the US through Romania to the Republic of Moldova and Ukraine, and onward to Hungary, Austria, the Czech Republic, Slovakia, and Germany, among others, while diversifying Romania’s natural gas supply sources.
‘In recognition of that role, and of Romania’s strategic position in the region, Argent LNG has invited Transgaz to become a shareholder in Argent LNG. The primary objectives are to enable the transit of U.S. LNG through Romania to the Republic of Moldova and Ukraine, and onward to Hungary, Austria, the Czech Republic, Slovakia, and Germany, among others, while diversifying Romania’s natural gas supply sources,’ the company mentioned.
According to the release, the infrastructure developed by Transgaz and its integration into the Vertical Gas Corridor support the diversification of natural gas supply routes and sources and contribute to strengthening energy security in Romania and the region.
‘Combined with the Vertical Corridor, that infrastructure supports the diversification of gas supply sources and routes, reduces dependence on Russian gas, and strengthens the energy security of Romania, the Republic of Moldova, Ukraine, and the broader Central, Eastern, and Southeastern European and Balkan region,’ according to the release.
Romania, through Transgaz, has led and supported the Vertical Corridor since 2016 as a strategic initiative to reduce dependence on Russian natural gas and to facilitate the supply of American LNG produced in the US.
SNTGN Transgaz SA is Romania’s national natural gas transmission system operator, responsible for the operation, maintenance, and development of the country’s gas transmission network.
Argent LNG, LLC is developing one of the largest LNG export terminals in the United States at Port Fourchon, Louisiana, with a planned capacity of 25 million metric tons per year and first cargo targeted for 2030.
source: Transgaz seeks to become shareholder in US LNG terminal developer – AGERPRES