Republic of Moldova seeks alternatives for natural gas procurement, including in Ukraine
The Republic of Moldova is holding discussions with Ukraine on possible cooperation in the natural gas market, seeking to identify supply sources and more favorable contractual terms. The subject will be addressed during Prime Minister Vasile Tofan’s visit to Kyiv, scheduled for the end of this week, the head of government announced at the Cabinet meeting on October 21.
According to the prime minister, Ukraine has domestic natural gas production and a surplus that could create opportunities for cooperation between the two states.
“We are engaged in very intensive discussions regarding possible cooperation in the gas market. As you know, Ukraine is a gas producer, has a surplus, and we are holding very intensive talks with the Ukrainian side to identify solutions in the interests of both countries,” Vasile Tofan said.
Other issues of common interest will also be discussed during the visit to Kyiv, including cooperation in the fields of energy, water, trade, and security.
At the same time, the authorities in Chișinău are seeking other sources of supply and negotiating with potential suppliers, including from Azerbaijan, Qatar, and Turkmenistan. The objective is to identify contracts offering more favorable terms for gas purchases over the medium and long term.
Discussions on diversifying supply sources are taking place amid rising natural gas prices on international markets. According to data presented by the prime minister, the market price has reached €86 per megawatt-hour, compared with €26 in January.
Vasile Tofan emphasized that the authorities cannot control international price developments, but they can negotiate more advantageous contracts for the Republic of Moldova.
“We cannot control the price of gas, because it is the price being paid by all countries today. But we can ensure more favorable contracts over the medium term and potentially the longer term. No one is waiting for us with cheap gas ready to offer us. We must work, negotiate, build relationships of trust, and turn these relationships into more favorable terms for Moldova,” the prime minister stated.
In the Republic of Moldova, the tariff for natural gas supplied to household consumers increased on October 1 to 26.14 lei per cubic meter, including VAT. The increase, of nearly 29%, was approved by the National Agency for Energy Regulation on September 28.
A further tariff adjustment before the end of the year has not been ruled out, depending on purchase price developments and the situation on international markets.
Potential cooperation with Ukraine could provide the Republic of Moldova with an additional source of supply. However, the impact on procurement costs and domestic tariffs will depend on the contractual terms and market developments.
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