Moldovan energy minister explains why security stocks cannot be used to reduce gas prices

Energy Minister Dorin Junghietu has provided clarifications regarding the proposal by Vadim Ceban, interim chairman of the Board of Directors of the Moldovagaz company, to use security stocks, in order to mitigate the impact of rising gas prices on consumers. The minister explained that these reserves represent the country’s strategic reserve and cannot be treated as ordinary commercial volumes.

According to Dorin Junghietu, security stocks were established for situations in which gas supplies are seriously disrupted or extremely low temperatures lead to exceptionally high consumption.

“Security stocks are not meant to make gas a little cheaper, but to ensure that we have gas in general, in exceptional circumstances,” the minister emphasized.

Junghietu explained that other gas volumes are available to manage price increases, namely the stocks accumulated by suppliers under the legal storage obligation. A price increase, even if it affects consumers and the economy, does not automatically constitute an exceptional situation in the gas sector.

The legislation establishes criteria for declaring such a situation, including a reduction in imports by more than 20 per cent compared with demand or extremely low temperatures recorded for seven consecutive days, resulting in excessive consumption.

The energy minister said that, even in the event of an exceptional situation, security stocks are not released automatically. Available market solutions must be used first, while the decision to use the strategic reserve may be taken only by the competent authority responsible for managing crisis situations.

According to Junghietu, the Energy Ministry continuously monitors and assesses the situation in the sector; however, it does not declare an exceptional situation on its own and cannot independently decide to release security stocks.

“The fact that this gas was purchased earlier at a lower price does not change its intended purpose. Using it now could temporarily reduce the cost of certain purchases, but it would not eliminate the costs. The reserve would later have to be replenished, possibly at higher prices,” the minister noted.

At the same time, Junghietu warned that depleting part of the strategic reserve would reduce the level of protection for consumers in the event of a potential genuine interruption of supplies.

Moldova presently has 56.3 million cubic meters of gas in its security stocks, an amount estimated to cover approximately ten days of winter consumption. The minister noted that this reserve is not a surplus and cannot be replenished immediately, particularly in crisis conditions, when gas may become more expensive and more difficult to procure or transport.

Dorin Junghietu says that any temporary effect on prices must be assessed against the risk of reducing the state’s ability to intervene in the event of a genuine energy emergency. According to the minister, decisions on the use of strategic reserves must be made in accordance with legal provisions and based on a comprehensive assessment of the risks.