Moldovan authorities need to negotiate with Gazprom on gas supplies from early 2025 - Moldovagaz head
CHISINAU. Nov 15 (Interfax) - Terminating the contract with Gazprom for gas supplies to Moldova and Transdniestria is undesirable, and the authorities must negotiate with the Russian company on continuing transit through Ukraine, Moldovagaz CEO Vadim Ceban said.
"In my opinion, it is premature to talk about the irrelevance of supplies from Gazprom. And breaking the contract in the current situation is extremely undesirable. Moldovagaz itself has normal working relations with the Russian shareholder. However, at the government level, contacts are minimized. I have already noted that gas transit from Gazprom through Ukraine may continue after the New Year, but for this to happen, the government must conduct the relevant negotiations and agree on the conditions," Ceban said in an interview with the Moldovan publication logos-pres.md.
Gazprom currently has legal grounds for the early termination of its contract with Moldovagaz, Ceban said.
"Contrary to the claims of some experts that Gazprom has no grounds to terminate the contract, this is not the case. The Russian side can terminate it at any time for commercial reasons. Primarily, due to an unresolved issue of debts, which is a component of the contract. Also, [it can do so] due to force majeure circumstances associated with negotiating a new transit agreement through Ukraine," he said.
"Transit through Ukraine might continue even without a new contract between Gazprom and Naftogaz," Ceban said when commenting on gas supply options for Moldova and Transdniestria. Changing the payment scheme for transit could serve as a solution, he said. Contracts could be concluded by European traders and Ukraine's gas transmission system operator, with payment for gas made at the Russian border.
"Alternative gas supply routes have already been tested," he said. The Trans-Balkan Corridor is the primary option. "We can also continue and fulfil our contract with Gazprom via this route," Ceban said.
"We will not face problems with gas. What gives us additional confidence are the gas reserves being built up to supply consumers during peak demand periods. At this point, Moldovagaz has already purchased 120 million cubic meters of gas, excluding the amounts already contracted on a fixed schedule [for November, December and part of January], which are stored with traders," Ceban said.
At the same time, "supplying electricity to the country requires increased attention for several reasons," he said. If Russian gas supplies to the Moldovan GRES cease, the plant will no longer be able to operate. "The issue of supplying gas to the Transdniestrian region via other routes can be resolved, but this gas might be significantly more expensive. Accordingly, this would also impact the cost of electricity purchased by Moldova from the Kuchurgan TPP [Moldovan GRES]," Ceban said.
"The interconnection of Moldova's and Ukraine's power grids with the European energy system [ENTSO-e] under current conditions creates certain energy supply risks in the region," he said. There may periodically be significant power shortages, which would affect prices. "We observed this in early October when electricity prices on the Romanian exchange reached 300-400 euros per MWh [the price from the Moldovan GRES is $65 per MWh]. If electricity is purchased at such prices, charges for consumers will naturally have to be raised, which could again lead to social tensions," Ceban said.
"Currently, I am only acting as the nominal administrator, but this does not affect the operational capability of the company's governing bodies or the functionality of JSC Moldovagaz in any way," Ceban said. His was commenting on the situation with the approval of Moldovagaz's board of directors. "The enterprise is currently fully functional and operating as usual. Contrary to the claims of some 'experts,' gas purchases, as I mentioned earlier, are being carried out as planned, and the necessary reserves have been created. All current decisions are being made promptly and in accordance with Moldovan legislation. The Moldovagaz supervisory board and the general shareholders meeting have the authority to make any decisions related to the company's operations," Ceban said.
"Recently, there has been a certain level of mutual understanding among shareholders regarding the approval of the board of directors. Perhaps a shareholders' meeting will take place at the end of November, and the issue will be resolved by the end of this year," he said.
