You're reading: Moldova won’t sign new contract with Gazprom until gas pipeline built from Romania

CHISINAU, Moldova — The Moldovan government does not plan to enter into a new gas supply contract with Russia’s gas monopoly Gazprom for the time being, Moldovan Economy and Infrastructure Minister Chiril Gaburici said on Aug. 19 in an interview with a local TV channel.

“The current contract was extended repeatedly. It is valid until the end of 2019. Therefore, we will not hold negotiations yet on the signing of a new contract with Gazprom,” Gaburici said.

He said that the construction will begin at the end of August on a gas pipeline between Chisinau and Ungheni that will link Moldova’s gas system to Romania’s one. The Moldovan government believes this will make it possible to arrange alternative gas supplies from Romania.

“The Moldovan government will not hold negotiations on a new contract for supplies of natural gas with Russian company Gazprom until the Chisinau-Ungheni gas pipeline is put into operation. We really want to have access to alternative gas as soon as possible. Then there will be competition and everyone will fight for us as a client. Both one and the other will offer us better prices. Those who work in sales know what to do so that the client buys from you. And then our hands will be untied and we will know how to conduct further negotiations so as to get more favorable terms,” Gaburici said.

Moldova has been buying gas from Gazprom under a contract signed in 2008. The contract is renewed annually and its provisions remain in force. Under the terms of the contract, the price is calculated quarterly depending on the price of oil on world markets. The current agreement on gas supplies to Moldova is valid until Dec. 31, 2019.

Construction of the Chisinau-Ungheni pipeline is scheduled to start by the end of August and be completed within ten months. The construction of the pipeline will make it possible to complete a project to link the Moldovan and Romanian gas transport systems, the first phase of which involved the construction of the Iasi-Ungheni pipeline.

The 120-kilometer Chisinau-Ungheni pipeline will be built by Eurotransgaz, which was founded by Romania’s Transgaz and won the tender for the privatization of Moldovan state gas pipeline company Vestmoldtransgaz. Eurotransgaz has confirmed its intention to build the pipeline and invest up to 93 million euros. Moldova will be able to import 1.5 billion cubic meters of gas via the Chisinau-Ungheni pipeline, which is enough to fully cover the country’s fuel needs without the breakaway Transnistria region.