Moldova considering possible conclusion of long-term contracts for gas, electricity supplies from Romania – PM

BUCHAREST. March 1 (Interfax) – Moldova is mulling the conclusion of long-term contracts for gas and electricity supplies from Romania in order to diversify its supply sources, Moldovan Prime Minister Dorin Recean said at a joint press conference with his Romanian counterpart Nicolae Ciuca in Bucharest.

Recean, who is on his first foreign visit to Romania, said energy was the focus of the talks in Bucharest. He said he discussed with the Romanian prime minister the promotion of strategic partnership with Romania in the field of energy, including in terms of drawing Romanian investment. He is confident that this area “has a great potential for development.”

“We discussed the facilitation of the conclusion of long-term contracts for the purchase of electricity and gas from Romanian energy companies in order to diversify the sources of supplies and tighten the security of the left bank of the Prut River,” Recean said.

Romania has already provided critical assistance to Moldova last year, when the country was deprived of its source of electricity supplies due to the hostilities in Ukraine, he said.

“Another example of firm support [from Romania] is the Iasi-Chisinau pipeline, which is currently used and serves as a crucial factor in providing an alternative [to Russian gas] to consumers in Moldova,” the Moldovan prime minister said.

As previously reported, since October 1, 2022, Gazprom cut the daily volume of gas supply to Moldova by 30% to 5.7 million cubic meters per day against the gas demand of 8.06 mcm. Gazprom explained this by technical problems related to the restriction of gas transit through Ukraine. During the entire winter period, Gazprom has been delivering the same amount of gas to Moldova of 5.7 mcm per day, which is less than 40% of the required volume for this time of the year. Moldova buys the rest of its gas on the spot market or takes it from storage facilities in Romania and Ukraine, having made reserves in the fall. At the same time, most of the gas is supplied via the new Iasi-Ungheni-Chisinau gas pipeline.

Since December 4, Moldova has been supplying the entire volume of gas from Gazprom to Transdniestria, which in return covers more than 60% of the electricity demand on the right bank. Moldova covers the rest of its electricity needs with its domestic production of about 25% and buys it from Romania.

As of March 1, the Moldovan state company Energocom extended by one more month, until the end of March, the contract for the purchase of electricity from the Moldovan GRES, which is located in the Transdniestrian region and belongs to the Russian Inter RAO Group. Under the contract, Energocom will buy about 244,000 MWh from the Moldovan GRES at the former price of $73/MWh. This will account for 88% of the electricity shortage. Energocom will continue to buy the rest from the Romanian company SN Nuclearelectrica SA at 30 MWh during the daytime and 10 MWh at night.