Moldovagaz purchases 80% of gas needed for winter season in Moldova - company head

CHISINAU. Dec 3 (Interfax) - JSC Moldovagaz has procured 80% of the natural gas needed for the heating season and is currently purchasing volumes for February and March, the company's chairman Vadim Ceban said during parliamentary hearings regarding the increase in the gas tariff and its impact on consumers and the national economy.

"To ensure natural gas consumption during the cold season from October to March, around 725 million cubic meters of gas are required. So far, 563 million cubic meters have been purchased, which is about 80%, while the remaining 163.4 million cubic meters needed for February and March are in the process of being procured," Ceban was quoted as saying by moldpress.md.

Mass purchases for the cold season began in July when prices on the TTF, the European natural gas exchange, were at their lowest, he said. "In May, there were not enough volumes for purchases, and there were no offers. Procurement began in July. There were favorable price signals in October, but in November market costs rose by about 25%. Prices are set on exchanges; we cannot influence them," Ceban said.

"About 30% of consumers use natural gas as a heat source, while 20% use thermal energy. We can guarantee that compensation [for consumers due to high gas prices] will continue to be provided, as it has been over the past two years, to mitigate the impact on consumers," MP and Chairman of the Economic, Budget & Finance Committee Radu Marian said. He moderated the public hearings.

The authorities have approved a 60-day action plan to be implemented by key energy bodies, Marian said. Gas suppliers have been asked to draft a source diversification plan and a 12-month gas procurement program for consumers.

As reported, the natural gas tariff for end consumers in Moldova increased 27.6% on December 1. The decision to raise domestic gas prices was made urgently due to the significant rise in international purchase prices for gas.

On November 26, Moldovagaz submitted a request to the National Agency for Energy Regulation (ANRE) to increase the price of natural gas for end consumers by 39.7%.

On November 25, a Moldovan delegation led by Energy Minister Victor Parlicov discussed options for organizing Russian gas supplies to Moldova from January 1, 2025, as well as ways to settle JSC Moldovagaz's debt to Gazprom , during negotiations with Gazprom CEO Alexei Miller in St. Petersburg.

Following the talks, Moldovan Prime Minister Dorin Recean warned citizens of a "tough winter ahead" and urged them to conserve energy. There was a need to prepare for a potential crisis, he said.

Amid potential disruptions in Russian gas supplies to Transdniestria, Moldovan authorities are also preparing for the possibility that electricity deliveries from the Moldavskaya GRES (MGRES) could be halted. Consequently, the Moldovan government has extended JSC Energocom's obligations for utility services until March 2025. "With a branch in Romania and trading licenses for electricity and natural gas, the company can secure the necessary energy volumes from alternative sources in situations where MGRES cannot produce the required energy for the right-bank region's consumption," the Energy Ministry said.

In light of this, Parlicov said that electricity tariffs in Moldova could rise 50%.