The contract with Gazprom remains in effect until 2026, and while the Russian gas giant did cut supplies to Moldova, there are no reasons to expect a complete halt, says Constantin Borosan, state secretary at the Ministry of Energy.
“Today we have gas in storage. For the first time, the government, through the state company Energocom, has stored gas that was bought before the start of heating season, to make sure that in any scenario where gas supplies are affected, we have enough fuel to get through the winter. When these amounts were bought, the situation on the energy stock markets was as it was, with much higher prices. Now we are preparing for next winter. We are preparing to make purchases so that people have enough gas”, Constantin Borosan said during a Radio Moldova talk show.
According to Borosan, the authorities are considering the publicly discussed proposal that gas should now be bought at lower prices and infused into the stored amounts to lower the overall cost. But to do this, the government has to find the money first.
“To be able to make this purchase, we need to have available funds first. Which means that the gas that has already been bought needs to be supplied, consumed and paid for. Only then will funds become available and they could be used for cheaper gas purchases. We are considering this possibility”.
The state secretary added that, while Gazprom fails to meet its contractual obligations, the current deal still stands.
“Gazprom and Moldovagaz signed a 5-year contract in 2021, valid from October 2021 to September 2026. There are certain amounts that must be delivered on the western side and the eastern side (of the Nistru River). In October 2022, Gazprom unilaterally decided to cut supplies to Moldova. The delivered volume of 5.7 million m3 cannot cover the entire consumption. Since December 2022, all the gas has been delivered to the left bank. For now, there are no conditions for the delivery of this volume of 5.7 million m3 to be interrupted”, said Borosan.
Since December 2022, the Transnistrian region has been receiving the entire volume of gas supplied by Gazprom, and in return the Kuchurgan Power Plant provides electricity to the western bank. Energocom receives from the eastern bank 88% of the electricity needs at a price of 73 dollars/MWh.