All Russian gas received by Moldovagaz in Dec to go to Transdniestria - deputy PM
CHISINAU. Dec 5 (Interfax) - All gas received by Moldovagaz from Gazprom in December will be supplied to Transdniestria, Moldovan Deputy Prime Minister and Infrastructure and Regional Development Minister Andrei Spinu said.
"The decisions adopted pursue only one goal: maintaining the country's connection to electricity, gas, and heat and having the lowest rate possible. The obligation to pay for 5.7 million cubic meters of gas per day lays with the left bank [Transdniestria]. The right bank is not going to pay anything for the gas supplied by Gazprom, but will pay only for electricity. Moldovagaz did not pay [Gazprom] the advance for December. Moldovagaz will pay for the right bank's consumption in November by December 20," Spinu said on social media on Sunday after experts criticized the Moldovan government's decision to supply Transdniestria with all gas from Gazprom in order to receive cheap electricity in return.
According to the contract signed between Moldovagaz and Gazprom, 406 mcm of gas should be supplied in December, while 5.7 mcm per day totals 176.7 mcm over the 31 days of December, he said.
"In other words, Gazprom will supply only 43% of contractual volumes. This volume is clearly insufficient to supply both banks of the Dniester with gas and electricity. In the first three days of December, 3.4 mcm per day came into the right bank and 2.3 mcm per day to the left bank. From December 4, 5.7 mcm per day will enter the left bank, meaning that 176.7 mcm will be divided as follows: 10.2 mcm to the right bank and 166.4 mcm to the left bank, including for the production of electricity," Spinu said.
The agreement signed with Moldovan GRES in Transdniestria on December 3 stipulates supplies to the right bank of the Dniester of less than 204,000 megawatts, 53% of all electricity consumption, he said.
"For this, 67 mcm of gas are needed. In conclusion, adding up the volumes supplied in the first three days of the month and the volume allocated for electricity production, approximately 77.2 mcm of gas, or 43%, will be used for the right bank and 99.4 mcm, or 57%, for the left bank," Spinu said.
Approximately 3.2 mcm of gas per day will go to Transdniestria in December, he said.
"This gas is enough to supply residents of the left bank with gas, heat, and electricity. December is a cold month, and consumption is higher than in November. You may remember that 2.3 mcm were allocated per day in November. This volume of gas will be enough to guarantee manufacturing activity at enterprises of the left bank, including Moldova Steel Works. It's obvious that these companies will not be able to operate as usual. For comparison, just the left bank should receive 217 mcm of gas from Gazprom in line with the agreement in December," Spinu said.
Moldova will purchase gas from other sources in order to supply consumers on the right bank of the Dniester, as well as begin to use reserves, he said.
"We began stocking up on gas as early as summer. We have over 250 mcm today, and we are continuing acquisitions. The average purchase price for gas is around $1,000. The cost will not lead to an additional rate hike for gas. We're offering compensation, and we'll save and see out this winter well. I want to clarify: I do not support appeals for the idea that we need to fully cut off gas on the left bank of the Dniester. The decisions of politicians should be humane for all citizens of our country," Spinu said.
Chisinau and Tiraspol earlier signed an agreement on the terms of electricity supplies to the right bank of the Dniester at the expense of an increase in the gas supplied to Trasdniestria.
Gazprom cut daily volumes of gas supplies to Moldova 30% to 5.7 mcm on October 1, while the country needs 8.06 mcm. Gazprom said the reduction is due to technical problems related to limited gas transit through Ukraine. Gazprom has confirmed that it will also supply Moldova with 5.7 mcm of gas per day in December, 43.5% of what is necessary during the cold period.
According to preliminary data, Moldova needs around 11 mcm of gas per day in December, two-thirds of which for the Transdniestria region where electricity is generated. State-owned company Energocom and Moldovan GRES were unable to come to an agreement on the station's supplies of electricity to the right bank of Moldova amid the gas shortage in November. Moldovan GRES supplied 67% of the electricity needed for the right bank of the Dniester in October.
Moldovagaz cut supplies of gas to Transdniestria 40% from 3.9 mcm per day to 2.3 mcm per day in November in connection with Moldovan GRES declining to supply electricity to the right bank of the Dniester. This allowed Moldova to save a portion of the gas stored in storage facilities in Ukraine and Romania.