ANNUAL REPORT OF “TRANSGAZ” MANAGEMENT INDIVIDUAL ...

SNTGN “TRANSGAZ” SA Medias Annual Management Report for 2007
CH.1 – ANALYSIS ON THE COMPANY’S ACTIVITY
1.1.a). Main activities
Transgaz is a joint-stock company operating under the Romanian laws and under the
Incorporation Document.
According to GD no. 334/2000 and Transgaz’ Incorporation Document, the company’s
objective is to achieve the national strategy established for gas transmission,
international transit, dispatching and research-design in the field of gas transmission
by means of trading deeds compliant with its scope of activity and in line with the
national legislation.
Transgaz’ main scope of activity - CAEN code 6030 - “Gas transmission through
pipelines” - consists of gas transmission, international transit, dispatching and
research-design in the field of gas transmission. On the other hand, Transgaz may
complementary perform other related/ancillary activities supportive of its main scope
of activity, according to the legislation in effect and the company’s Incorporation
Document (Article 6).
In accordance with the regulatory framework applicable to the gas sector, Transgaz
performs gas transmission activities based on: specific sector legislation, amended
Concession Agreement approved by GD no. 668/2002, gas transmission licence no.
40/17.01.2001, gas transit licence no. 41/17.01.2001 and authorization no.
829/20.09.2007 for the gas transmission system/site operation, granted by Decision no.
1398/2007 issued by the National Energy Regulatory Authority (ANRE).
The gas transmission activity is deemed as public service of national interest, as it is
included in the regulated segment of the gas domestic market. The gas transmission
services are provided, under natural monopoly conditions, based on tariffs determined
by ANRE. The contracts on transmission services are concluded for a gas year, based
on the framework contracts drawn up and approved by ANRE.
1.1.b). Transgaz’ incorporation date
Transgaz was established in 2000, following the restructuring of the former SNGN
“Romgaz” SA, under GD no. 334/April 28 th , 2000, published in the Romanian Official
Journal, Part I, no. 194/May 4 th , 2000.
SNGN “Romgaz” SA was restructured and reorganized, by division, based on GD no.
334/2000; the company was dissoluted and its main gas sector activities were
unbundled and organized into distinct activities.
Following such restructuring, Transgaz became the technical operator of the NTS,
responsible for its operation under quality, safety, economic efficiency and
environmental conditions.
1.1.c). Key merger or restructuring of Transgaz during the financial year
According to Decision no. 9/July 26 th , 2007 of the General Assembly of the
Shareholders, Transgaz underwent restructuring, by accounting unbundling of the gas
transmission regulated activities pursuant to Article 101(1) of Gas Law no. 351/2004,
further amended and supplemented. For the purpose of implementing the restructuring
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