Moldova to buy 10 mcm of gas for storage in Romania for $16.6 mln, able to pay advance to Gazprom

CHISINAU. Aug 30 (Interfax) – Moldovan state company Energocom will buy 10 million cubic meters of natural gas for $16.6 million from Moldovagaz, which gets gas from Russia’s Gazprom , Deputy Prime Minister and Infrastructure and Regional Development Minister Andrei Spinu said on his Telegram channel, citing a decision made by the country’s National Commission for Emergency Situations.

“This transaction will also enable Moldovagaz to pay the advance for August by September 1,” Spinu said.

It was reported earlier that the the National Commission for Emergency Situations, which is chaired by Prime Minister Natalia Gavrilita, had ordered state company Energocom to buy 10 mcm of natural gas for storage in Romania.

The gas will be purchased and delivered under a framework EFET (European Federation of Energy Traders) type purchase-sale contract between Energocom and Moldovagaz, the government’s press service told Interfax.

For the first tranche of 5 mcm, the purchase price will be about $1,459 per 1,000 cubic meters. The second tranche of the gas purchase will be made in September at a price of $1,881 per 1,000 cubic meters.

The gas will be stored in neighboring Romania, as Moldova does not have its own gas storage facilities.

Moldovagaz was unable to pay an advance to Gazprom for supplies in August and the Russian company agreed to defer the payment to September 1. Moldovagaz said that current gas rates in the country do not cover its purchase price.

The commission also decided to allocate MDL322 million from the state budget to increase Energocom’s charter capital.