Moldova gas supply faces uncertainty after 2025

Nation

27 November 2024, 02:01 PM

Russian Gazprom is ready to continue supplying gas to the unrecognized Transnistrian Republic at a rate of 2 billion cubic meters per year even after Jan. 1, 2025, when the transit contract with Ukraine expires.

During Russian-Moldovan negotiations in St. Petersburg on Nov. 25, a new delivery route was discussed—bypassing Ukraine via Türkiye. However, this alternative route also crosses Ukrainian territory, which may create new transit difficulties, experts warn, according to Russian media.

Gazprom intends to maintain gas supplies to Transnistria at the current level of about 5.7 million cubic meters per day in 2025.

The talks also considered the possibility of continuing exports via the usual route through Ukraine, but with gas being delivered at the country’s border, after which the buyer would independently cover the transit costs. Another option discussed was supplying Russian gas to Transnistria via Türkiye.

However, neither Gazprom nor Moldova have held talks with the operator of the Ukrainian gas transportation system regarding the use of its capacities.

Moldova receives Russian gas via Ukraine, but with the expiration of the transit contract on Jan. 1, 2025, supplies could cease entirely. Historically, the gas supply contract for Moldova included deliveries to the right bank of the Dniester and to Transnistria on the left bank, where the powerful Moldovan DRES (2.5 GW, owned by Inter RAO) is located, providing electricity, including to Moldova.

In October 2021, Gazprom and Moldovagaz signed a five-year contract to supply 3.3 billion cubic meters of gas annually. However, by the end of 2022, the Russian monopoly halved its deliveries to Moldova, citing the blockade of one of the two entry points into the export pipeline by Ukraine.

Currently, about 5.7 million cubic meters of gas per day are being transited via Ukraine from Russia, compared to the contracted 9 million cubic meters. This volume is entirely directed to Transnistria, while Chișinău buys gas from the European market via the pipeline from Romania (Iași-Ungheni-Chișinău).

The Moldovan government refuses to recognize the historical debt for gas deliveries, which Gazprom estimated at $709 million during the 2021 negotiations.

Earlier, it was reported that Ukraine and Gazprom signed an agreement on the transit of Russian gas to Europe at the end of 2019. The contract is valid until Dec. 31, 2024, under the “take or pay” formula. Gazprom is obligated to pay for the transit of no less than 40 billion cubic meters through Ukraine’s gas transport system in 2021–2024, regardless of the actual gas volumes delivered.

In July 2024, Ukrainian President Volodymyr Zelenskyy announced that Ukraine was in talks to supply gas from Azerbaijan to the EU.

At the same time, Azerbaijani President Ilham Aliyev stated that Ukraine and the European Union approached Azerbaijan with a proposal to establish natural gas supplies to Europe via Ukraine after the current transit contract with Russia expires at the end of 2024.

Naftogaz confirmed that there is a country ready to ensure gas transit through Ukraine.

In August 2024, Naftogaz confirmed that there is a company ready to ensure gas transit through Ukraine. This was stated by Naftogaz-Ukraine CEO Oleksiy Chernyshov, who noted that SOCAR, as a producer, could offer its gas.

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