{"id":447789,"date":"2019-12-14T09:57:13","date_gmt":"2019-12-14T09:57:13","guid":{"rendered":"http:\/\/www.moldova.org\/en\/?p=447789"},"modified":"2019-12-14T10:01:16","modified_gmt":"2019-12-14T10:01:16","slug":"where-will-the-republic-of-moldova-take-its-necessary-supply-of-natural-gas-from","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/where-will-the-republic-of-moldova-take-its-necessary-supply-of-natural-gas-from\/","title":{"rendered":"Where will the Republic of Moldova take its necessary supply of natural gas from?"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>The natural gas transit contract signed between <strong>Ukraine<\/strong> and the <strong>Russian Federation<\/strong> (through which the Republic of Moldova receives its supply of natural gas) expires at the end of 2019. The two countries didn&#8217;t reach yet any new agreement. Therefore, starting from January 1st, 2020, Moldova risks being left without natural gas and electricity.\u00a0While experts and parliamentary opposition signal the possible energy crisis, authorities try to think of feasible alternatives.<\/p>\n<h3>Switch solution no. 1<\/h3>\n<p>The first proposed alternative is to transport the Russian gas through the <strong>trans-Balkan corridor<\/strong> (that passes over Turkey, Bulgaria, Romania and Ukraine). Moldovagaz, the company in charge with natural gas distribution on the country&#8217;s territory posted an official <a href=\"https:\/\/www.moldovagaz.md\/rom\/centrul-de-presa\/sedinta-operativa-desfasurata-cu-sefii-subdiviziunilor-structurale-ale-sa-moldovagaz\">statement<\/a> saying: <em>&#8220;Moldova is ready to receive reverse flow gas through the trans-Balkan corridor. [&#8230;] According to the contract&#8217;s supplement\u00a0(regarding the term extension of the gas supply for the period 2020-2022), the available gas transport capacities in Bulgaria and Romania will be contracted between December 16th and 20th,&#8221;<\/em> the statement said.<\/p>\n<p>The\u00a0Minister of Economy and Infrastructure (MEI), <strong>Anatol Usat\u00eei<\/strong>, confirmed that the operators of gas systems in the Republic of Moldova and Ukraine will sign next week an <strong>agreement<\/strong> for gas delivery through the trans-Balkan corridor. Meanwhile, Moldova is continuing <span style=\"color: #993300\">negotiations with operators from Romania and Bulgaria<\/span>.<\/p>\n<p><em>&#8220;From the technical point of view, everything is already solved. Yesterday, the meeting of gas transport operators was held in Brussels, being attended by operators from all countries, which are included in the trans-Balkan corridor, including Bulgaria, Romania and the Republic of Moldova. The volumes were confirmed &#8211; at least 15 million cubic meters per day, which is the absolute maximum required for Moldova. These will be provided through the trans-Balkan corridor,\u201d\u00a0<\/em>\u00a0<a href=\"https:\/\/www.privesc.eu\/arhiva\/89527\/Conferinta-de-presa-sustinuta-de-Anatol-Usatii--ministrul-Economiei-si-Infrastructurii--si-Janez-Kopa%C4%8D--directorul-Secretariatului-Comunitatii-Energet\">claimed<\/a> Anatol Usat\u00eei during a press conference.<\/p>\n<p>The companies Moldovagaz, Moldovatransgaz and Tiraspoltransgaz carried out the reconstruction works of the main pipeline on the territory of Moldova to ensure the conditions for the reception of natural gas in reverse mode through the C\u0103u\u0219eni Gas Measuring Station.<\/p>\n<p>At the same time, the Minister of Economy still hopes that Ukraine and Russia will reach an agreement and the Russian natural gas will be delivered using the regular corridor.<\/p>\n<h3>Switch solution no. 2<\/h3>\n<p>While the Minister of Economy and Infrastructures assured everything is prepared for the gas transit through the trans-Balkan corridor, the Prime Minister of Moldova, <strong>Ion Chicu<\/strong>, announced another scenario, according to which in case Ukraine and Russia will not reach an agreement on gas transit,\u00a0<span style=\"color: #993300\">Ukraine will supply Moldova with natural gas.<\/span><\/p>\n<p><em>&#8220;Yesterday, we discussed the backup scenarios in Kiev, including the provision of gas in reverse mode. [&#8230;] Ukraine has assured us that it is ready to supply Moldova with natural gas and electricity, after January 1st, 2020, if no alternative of gas supply works,\u201d<\/em> Chicu <a href=\"https:\/\/www.zdg.md\/stiri\/stiri-politice\/scenariul-anuntat-de-premierul-r-moldova-ion-chicu-in-cazul-in-care-ucraina-si-rusia-nu-vor-ajunge-la-o-intelegere-privind-tranzitul-de-gaze\">said<\/a>.<\/p>\n<p>However, the prime minister did not announce what is the gas supplier, the natural gas price, the payment conditions and if there are any contracts ready to be signed with the gas supplier and with Ukrainian transport operator.<\/p>\n<h3>The emergency solution<\/h3>\n<p>The Government of Moldova decided to sign an agreement between Moldova and the European Bank for Reconstruction and Development (<strong>EBRD<\/strong>) on <span style=\"color: #993300\"><span style=\"color: #993300\">&#8220;The emergency gas procurement instrument&#8221; . <\/span><span style=\"color: #000000\">It is, basically<\/span><span style=\"color: #000000\"><span style=\"color: #993300\">,<\/span><\/span><\/span>\u00a0a financing instrument of up to <strong>$50 million<\/strong> implemented only at the request of the Republic of Moldova for purchasing a reserve of up to 400 million cubic meters of natural gas on the Ukrainian and\/or the EU market. It could be\u00a0used only if Moldovagaz notifies about the impossibility of providing gas supply services.<\/p>\n<div id=\"attachment_447790\" style=\"width: 940px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" aria-describedby=\"caption-attachment-447790\" class=\"size-full wp-image-447790\" src=\"http:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2019\/12\/gov.jpg\" alt=\"\" width=\"930\" height=\"620\" srcset=\"https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2019\/12\/gov.jpg 930w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2019\/12\/gov-300x200.jpg 300w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2019\/12\/gov-768x512.jpg 768w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2019\/12\/gov-400x267.jpg 400w\" sizes=\"(max-width: 930px) 100vw, 930px\" \/><p id=\"caption-attachment-447790\" class=\"wp-caption-text\">Prime Minister Ion Chicu and EBRD General Director for Eastern Europe and Caucasus, Matteo Patrone, signing the common agreement| source: gov.md<\/p><\/div>\n<p><em>&#8220;We used this financial mechanism to complete the set of alternative solutions for natural gas supply to consumers in the Republic of Moldova, in the case of an exceptional situation, which does not depend on the decisions of the Government. We are grateful to the EBRD for this help and I am absolutely sure that the number of projects carried out in our country with the support of the EBRD, as well as other external partners, will increase in the coming period,\u201d<\/em> <a href=\"https:\/\/gov.md\/ro\/content\/guvernul-semnat-un-aranjament-financiar-cu-berd\">stated<\/a> Ion Chicu.<\/p>\n<p>On the other hand, former prime minister of the Republic of Moldova, <strong>Maia Sandu<\/strong>, claimed that the loan of 50 million dollars offered by the EBRD for the purpose of supplying natural gas misses important details and accused the current government of non-transparency.<\/p>\n<p><em>&#8220;We discussed this topic with the European Bank. I am curious to see what the interest rate is, because this is definitely higher than the interest paid to the European Union Bank or to the Romanian credit. We considered this option very expensive.[&#8230;] After leaving the Government, the talks with Romania and Ukraine to use the reverse gas flow to the south were blocked in the tripartite formula. No one tells us the loan conditions as they would pay for it out of their own pocket. The citizens of Moldova will have to pay for it,&#8221;<\/em> the former prime minister <a href=\"https:\/\/www.zdg.md\/stiri\/stiri-politice\/maia-sandu-despre-creditul-de-50-de-milioane-oferit-de-berd-pentru-procurarea-rezervelor-de-gaze-naturale\">said<\/a>.<\/p>\n<p>**<\/p>\n<p>Even though authorities try to come up with solutions for this complicated situation, the energy experts from Moldova are very worried and still have a lot of questions regarding the multilateral agreements that need to be reached in the case of trans-Balkan corridor (between Turkey, Bulgaria, Romania, Ukraine and Moldova), the existence of contracts with any natural gas supplier and transporter in the case of supplying the gas from Ukraine, the adjustment of natural gas prices, the transportation contracts, the payment conditions and the transparency of the total cost and feasibility of each alternative. <em>&#8220;Moldova is the only country in Europe that will suffer, meaning it could literally freeze this winter, because we, unlike other countries, do not yet have any alternative to the gas delivered through Ukraine,\u201d<\/em> <a href=\"https:\/\/www.facebook.com\/watch\/?v=2485531668400880\">claimed<\/a> the energy expert Sergiu Tofilat.<\/p>\n<p>Photo: sputnik.md<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>The natural gas transit contract signed between Ukraine and the Russian Federation (through which the Republic of Moldova receives its supply of natural gas) expires at the end of 2019. The two countries didn&#8217;t reach yet any new agreement. Therefore, starting from January 1st, 2020, Moldova risks being left without natural gas and electricity.\u00a0While experts [&hellip;]<\/p>\n","protected":false},"author":31,"featured_media":447791,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,6,3,56],"tags":[35,27,305,491,32,88],"class_list":["post-447789","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-important-en","category-politics","category-reportaje","tag-important","tag-moldova","tag-moldovagaz","tag-natural-gas","tag-russia","tag-ukraine"],"content_social_share":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>The natural gas transit contract signed between <strong>Ukraine<\/strong> and the <strong>Russian Federation<\/strong> (through which the Republic of Moldova receives its supply of natural gas) expires at the end of 2019. The two countries didn&#8217;t reach yet any new agreement. Therefore, starting from January 1st, 2020, Moldova risks being left without natural gas and electricity.\u00a0While experts and parliamentary opposition signal the possible energy crisis, authorities try to think of feasible alternatives.<\/p>\n<h3>Switch solution no. 1<\/h3>\n<p>The first proposed alternative is to transport the Russian gas through the <strong>trans-Balkan corridor<\/strong> (that passes over Turkey, Bulgaria, Romania and Ukraine). Moldovagaz, the company in charge with natural gas distribution on the country&#8217;s territory posted an official <a href=\"https:\/\/www.moldovagaz.md\/rom\/centrul-de-presa\/sedinta-operativa-desfasurata-cu-sefii-subdiviziunilor-structurale-ale-sa-moldovagaz\">statement<\/a> saying: <em>&#8220;Moldova is ready to receive reverse flow gas through the trans-Balkan corridor. [&#8230;] According to the contract&#8217;s supplement\u00a0(regarding the term extension of the gas supply for the period 2020-2022), the available gas transport capacities in Bulgaria and Romania will be contracted between December 16th and 20th,&#8221;<\/em> the statement said.<\/p>\n<p>The\u00a0Minister of Economy and Infrastructure (MEI), <strong>Anatol Usat\u00eei<\/strong>, confirmed that the operators of gas systems in the Republic of Moldova and Ukraine will sign next week an <strong>agreement<\/strong> for gas delivery through the trans-Balkan corridor. Meanwhile, Moldova is continuing <span style=\"color: #993300\">negotiations with operators from Romania and Bulgaria<\/span>.<\/p>\n<p><em>&#8220;From the technical point of view, everything is already solved. Yesterday, the meeting of gas transport operators was held in Brussels, being attended by operators from all countries, which are included in the trans-Balkan corridor, including Bulgaria, Romania and the Republic of Moldova. The volumes were confirmed &#8211; at least 15 million cubic meters per day, which is the absolute maximum required for Moldova. These will be provided through the trans-Balkan corridor,\u201d\u00a0<\/em>\u00a0<a href=\"https:\/\/www.privesc.eu\/arhiva\/89527\/Conferinta-de-presa-sustinuta-de-Anatol-Usatii--ministrul-Economiei-si-Infrastructurii--si-Janez-Kopa%C4%8D--directorul-Secretariatului-Comunitatii-Energet\">claimed<\/a> Anatol Usat\u00eei during a press conference.<\/p>\n<p>The companies Moldovagaz, Moldovatransgaz and Tiraspoltransgaz carried out the reconstruction works of the main pipeline on the territory of Moldova to ensure the conditions for the reception of natural gas in reverse mode through the C\u0103u\u0219eni Gas Measuring Station.<\/p>\n<p>At the same time, the Minister of Economy still hopes that Ukraine and Russia will reach an agreement and the Russian natural gas will be delivered using the regular corridor.<\/p>\n<h3>Switch solution no. 2<\/h3>\n<p>While the Minister of Economy and Infrastructures assured everything is prepared for the gas transit through the trans-Balkan corridor, the Prime Minister of Moldova, <strong>Ion Chicu<\/strong>, announced another scenario, according to which in case Ukraine and Russia will not reach an agreement on gas transit,\u00a0<span style=\"color: #993300\">Ukraine will supply Moldova with natural gas.<\/span><\/p>\n<p><em>&#8220;Yesterday, we discussed the backup scenarios in Kiev, including the provision of gas in reverse mode. [&#8230;] Ukraine has assured us that it is ready to supply Moldova with natural gas and electricity, after January 1st, 2020, if no alternative of gas supply works,\u201d<\/em> Chicu <a href=\"https:\/\/www.zdg.md\/stiri\/stiri-politice\/scenariul-anuntat-de-premierul-r-moldova-ion-chicu-in-cazul-in-care-ucraina-si-rusia-nu-vor-ajunge-la-o-intelegere-privind-tranzitul-de-gaze\">said<\/a>.<\/p>\n<p>However, the prime minister did not announce what is the gas supplier, the natural gas price, the payment conditions and if there are any contracts ready to be signed with the gas supplier and with Ukrainian transport operator.<\/p>\n<h3>The emergency solution<\/h3>\n<p>The Government of Moldova decided to sign an agreement between Moldova and the European Bank for Reconstruction and Development (<strong>EBRD<\/strong>) on <span style=\"color: #993300\"><span style=\"color: #993300\">&#8220;The emergency gas procurement instrument&#8221; . <\/span><span style=\"color: #000000\">It is, basically<\/span><span style=\"color: #000000\"><span style=\"color: #993300\">,<\/span><\/span><\/span>\u00a0a financing instrument of up to <strong>$50 million<\/strong> implemented only at the request of the Republic of Moldova for purchasing a reserve of up to 400 million cubic meters of natural gas on the Ukrainian and\/or the EU market. It could be\u00a0used only if Moldovagaz notifies about the impossibility of providing gas supply services.<\/p>\n<div id=\"attachment_447790\" style=\"width: 940px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" aria-describedby=\"caption-attachment-447790\" class=\"size-full wp-image-447790\" src=\"http:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2019\/12\/gov.jpg\" alt=\"\" width=\"930\" height=\"620\" srcset=\"https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2019\/12\/gov.jpg 930w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2019\/12\/gov-300x200.jpg 300w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2019\/12\/gov-768x512.jpg 768w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2019\/12\/gov-400x267.jpg 400w\" sizes=\"(max-width: 930px) 100vw, 930px\" \/><p id=\"caption-attachment-447790\" class=\"wp-caption-text\">Prime Minister Ion Chicu and EBRD General Director for Eastern Europe and Caucasus, Matteo Patrone, signing the common agreement| source: gov.md<\/p><\/div>\n<p><em>&#8220;We used this financial mechanism to complete the set of alternative solutions for natural gas supply to consumers in the Republic of Moldova, in the case of an exceptional situation, which does not depend on the decisions of the Government. We are grateful to the EBRD for this help and I am absolutely sure that the number of projects carried out in our country with the support of the EBRD, as well as other external partners, will increase in the coming period,\u201d<\/em> <a href=\"https:\/\/gov.md\/ro\/content\/guvernul-semnat-un-aranjament-financiar-cu-berd\">stated<\/a> Ion Chicu.<\/p>\n<p>On the other hand, former prime minister of the Republic of Moldova, <strong>Maia Sandu<\/strong>, claimed that the loan of 50 million dollars offered by the EBRD for the purpose of supplying natural gas misses important details and accused the current government of non-transparency.<\/p>\n<p><em>&#8220;We discussed this topic with the European Bank. I am curious to see what the interest rate is, because this is definitely higher than the interest paid to the European Union Bank or to the Romanian credit. We considered this option very expensive.[&#8230;] After leaving the Government, the talks with Romania and Ukraine to use the reverse gas flow to the south were blocked in the tripartite formula. No one tells us the loan conditions as they would pay for it out of their own pocket. The citizens of Moldova will have to pay for it,&#8221;<\/em> the former prime minister <a href=\"https:\/\/www.zdg.md\/stiri\/stiri-politice\/maia-sandu-despre-creditul-de-50-de-milioane-oferit-de-berd-pentru-procurarea-rezervelor-de-gaze-naturale\">said<\/a>.<\/p>\n<p>**<\/p>\n<p>Even though authorities try to come up with solutions for this complicated situation, the energy experts from Moldova are very worried and still have a lot of questions regarding the multilateral agreements that need to be reached in the case of trans-Balkan corridor (between Turkey, Bulgaria, Romania, Ukraine and Moldova), the existence of contracts with any natural gas supplier and transporter in the case of supplying the gas from Ukraine, the adjustment of natural gas prices, the transportation contracts, the payment conditions and the transparency of the total cost and feasibility of each alternative. <em>&#8220;Moldova is the only country in Europe that will suffer, meaning it could literally freeze this winter, because we, unlike other countries, do not yet have any alternative to the gas delivered through Ukraine,\u201d<\/em> <a href=\"https:\/\/www.facebook.com\/watch\/?v=2485531668400880\">claimed<\/a> the energy expert Sergiu Tofilat.<\/p>\n<p>Photo: sputnik.md<\/p>\n<div class='heateorSssClear'><\/div><div  class='heateor_sss_sharing_container heateor_sss_horizontal_sharing' data-heateor-sss-href='https:\/\/www.moldova.org\/en\/where-will-the-republic-of-moldova-take-its-necessary-supply-of-natural-gas-from\/' data-heateor-sss-no-counts=\"1\"><div class='heateor_sss_sharing_title' style=\"font-weight:bold\" ><\/div><div class=\"heateor_sss_sharing_ul\"><a aria-label=\"Facebook\" class=\"heateor_sss_facebook\" href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fwww.moldova.org%2Fen%2Fwhere-will-the-republic-of-moldova-take-its-necessary-supply-of-natural-gas-from%2F\" title=\"Facebook\" rel=\"nofollow noopener\" target=\"_blank\" 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