Romania's Romgaz plans to establish Moldovan subsidiary for gas supply
CHISINAU. March 31 (Interfax) - Romanian national supplier of natural gas Romgaz, 70% of whose shares are state-owned, is planning to establish a subsidiary in Moldova to begin supplying gas to the Moldovan market, according to materials from a shareholder meeting posted by Romgaz on its website.
"Recent changes to legislation and the current situation on the Moldovan gas market reflect steps taken by the Moldovan government to decrease dependence on natural gas supplies from Russia, offering Romgaz a range of opportunities to gain access to this new market," it said.
The Romanian company estimates Moldovan gas market at 1 bcm per year. The country is fully dependent on gas imports.
It also said that transport infrastructure essential for gas supplies from Romania is already available, referring to the 1.88-bcm Iasi-Ungheni interconnector.
The Romanian Commodities Exchange also runs an electronic platform in Moldova through which commercial users can purchase natural gas.
The difference in price and the planned increase in gas output thanks to Romgaz's Neptun Deep offshore project in the Black Sea are also preconditions for Romania to begin exporting gas to Moldova.
Romgaz estimates that gas supply to Moldova will achieve zero return once sales reach 100,000 MWh per year at a price of approximately 38 euros per 1MWh. In an optimistic scenario, in line with the current market situation, return could be between 8.5% and 10.5% in the first three years of gas export.
Romgaz plans to register its Moldovan subsidiary in Chisinau, with a charter capital of 1 million Moldovan lei or around $55,000.
Romgaz is expected to take its final decision regarding the establishment of the Moldovan subsidiary at a shareholders meeting on April 29.
As reported, Moldovan authorities made changes to legislation in February this year due to problems with gas supply to Transniestria. JSC Moldovagaz, 50% owned by Gazprom , is no longer the republic's sole gas supplier, and could lose its status as a supplier obligated to provide public services. In accordance with the new legislation, such suppliers will be selected based on a contest by directive of the National Agency for the Regulation of Energy (NARE).
Romgaz is Romania's largest gas producer. According to Romanian media, Romania's annual natural gas output will double once production begins on the Black Sea Neptun Deep field in 2027.
