Price of Gazprom's gas for Moldova at $1,230 per 1,000 cubic meters in Jan, but whole amount to go to Transdniestria - Moldovagaz CEO
CHISINAU. Jan 9 (Interfax) - The price of natural gas from Russia's Gazprom for Moldova will stand at around $1,230 per 1,000 cubic meters in January, but the entire amount will be shipped to Transdniestria, JSC Moldovagaz CEO Vadim Ceban said on Telegram on January 4.
"Under the purchase price calculation formula, a final price will be determined after January 10 of this year. The whole amount of gas from the Russian supplier is being delivered to Tiraspoltransgaz LLC, including for generating electricity for the right bank of the Dniestr River," Ceban said.
Ceban said earlier that "Moldovagaz will be purchasing gas on the spot market through a state-owned company from Energocom at least until April 2023 to cover the needs of the right-bank part of Moldova, while the gas provided by Gazprom will continue to go to Transdniestria."
"It is needed in order to enable electricity generation at the Moldavskaya GRES power plant so that we can buy it at affordable prices. The situation could change only if Gazprom increases gas supplies to Moldova. Such an option cannot be ruled out either," he said.
Interfax has reported that Gazprom on October 1 reduced daily gas supplies to Moldova by 30% to 5.7 million cubic meters from the required 8.06 mcm, citing technical problems due to restrictions on gas transit through Ukraine. Gazprom's gas deliveries to Moldova in November, December and January stand at 5.07 million cubic meters per day, which is less than 40% of what is necessary during the cold period.
Moldova, however, used gas from Gazprom only in the first three days of December. On December 4, Moldova began sending all gas received from Gazprom to Transdniestria, which, in turn, covers around 60% of Moldovan demand for electric power. Meantime, Moldova is using gas from its earlier created reserves. Transdniestria, the region on left bank of the Dniester River, has not paid for Gazprom gas in over a decade.
Interfax reported earlier that Moldovagaz and Gazprom signed a five-year contract for the supply of gas that entered into effect on November 1, 2021. According to the formula agreed upon in the contract, from October 1 to March 31, 30% of the price will be formed based on the gas price on the spot market and 70% of it will depend on the oil price. Meanwhile, from March 1 to September 30, 70% of the price will depend on the gas price on the spot market and 30% will be based on the oil price. The price for gas from Gazprom was $450 per thousand cubic meters in November 2021, $550 in December, $647 in January 2022, $564 in February, $547 in March, $1,193 in April, $920 in May, $880 in June, $980 in July, and $1,458.5 in August, $1,883 in September, $1,083 in October, $823 in November, and $785 in December.