CHISINAU – Moldovagaz, a joint Russian-Moldovan company and leading supplier of natural gas to Moldova, is planning to extend the existing contract with Gazprom for another two or three years, the company’s press officer told Interfax.
“This period fully meets the fundamental economic principles of medium-term planning, including existing transit agreements between Russia and Ukraine. At the same time, a scenario under which the contract will be extended only for one year is also quite possible,” a Moldovagaz representative said.
Moldova annually consumes three billion cubic meters of gas. The right bank of the river Dniester consumes more than one billion cubic meters of the volume, while Moldova does not control the Transdniestria region.
Key priorities for the company include cutting technological and other losses. “Over the past decade, we have reduced the figure twofold to 28,000,000 cubic meters per year. Moldovagaz has designed an appropriate plan for years to come, which will help further reduce this level,” the representative said.
Currently, a telemetry system is being introduced to remotely track and adjust the operation of gas transportation and gas distribution systems, and a renewal of the company’s vehicle pool and special equipment is underway, he said.
Additionally, the Moldovan gas supplier is looking at reducing carbonization levels and transitioning to low-carbon fuels through developing a network of natural gas vehicle filling stations and gradually switching public and communal transport to gas. “This is a lengthy process which has a strong inertia with multiple derivatives, but in the practical sense, this is the most realistic project in terms of implementation at this point,” the Moldovagaz representative said.
As reported earlier, the existing gas supply contract between Moldovagaz and Gazprom expires at the end of September 2021. To continue shipments, new contracts must be signed.
In 2020, Moldova spent 3.805 billion lei (more than $210 million as per the current exchange rate) to buy gas from Gazprom.
Moldovagaz is Moldova’s largest energy company with 740,000 customers. It also facilitates natural gas transit to the Balkans.
