Moldova may buy gas for MGRES after 2024 in exchange for electricity - PM
CHISINAU. Dec 20 (Interfax) - Moldovan Prime Minister Dorin Recean does not rule out the possibility of Moldova purchasing gas specifically for the Moldavskaya GRES or MGRES power plant in the unrecognized Transdniestrian Moldavian Republic (Transdniestria) in order to receive electricity in return.
"We have declared a state of emergency for two months to enable us to take emergency measures if necessary. We are fully supplied with gas for the heating season. Gas purchases have been made until April. There may be issues with electricity. We will maximize production - we have some reserves, and we will be connected with Romania, allowing us to use the high-voltage line in the north; it is vulnerable, but we will use all means to supply Moldova with the missing electricity. We are also considering the scenario of producing electricity at the Moldavskaya GRES using gas that we purchase specifically for this purpose. It all depends on the price of gas. However, we see that prices on the European market are falling, so we are considering this option," Recean said on Moldova's Jurnal TV channel on Friday.
At the same time, he acknowledged that this option would inevitably lead to an increase in electricity costs. This scenario could be applied if gas supplies to Transdniestria are halted starting January 1, 2025. Recean did not rule out that Gazprom might continue gas supplies to Transdniestria after January 1, but these would likely be small volumes sufficient only to meet the needs of residents in the Transdniestrian region.
Moldova currently imports about 30% of its required electricity, he said. In the worst-case scenario, starting January 1, electricity imports may increase to 65% of its needs, or 400 MW.
"Of this volume, Romania is prepared to sell Moldova 120 MW at a preferential price not exceeding 80 euros [per MW], while the remaining volume will have to be purchased at market rates. In this case, a tariff increase for electricity will be inevitable, though it is difficult to predict the extent of the increase. If tariffs rise, the authorities promise to assist the population with compensation," Recean said.
Right-bank Moldova currently pays MGRES $66 per MW. The electricity is generated using Russian gas, which Transdniestria does not pay for.
As previously reported, the Moldovan government introduced a state of emergency on December 16 and the Transdniestrian administration did the same on December 11 due to the threat of gas supply cuts to the left bank of the Dniester following the potential halt of Russian gas transit through Ukraine starting January 1, 2025.
Gas supplies to Transdniestria could potentially be routed through the Trans-Balkan corridor. However, Gazprom has made such supplies conditional on Moldova recognizing a historical gas debt of just over $700 million. Chisinau does not recognize this debt, citing the results of an international audit conducted in 2023 at the request of the Moldovan government. Gazprom in turn does not recognize the audit's findings.