Moldovagaz prepares investments of 19 million euros in 2021

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For 2021, Moldovagaz planned investments of about 385 million lei (about 19 million euros), said Vadim Ceban, president of the company’s board of directors, during the conference “Regional Approach Chișinău – partners in energy – progress through proven solutions”, organized by Energynomics.

“We plan to continue the repair works of the Odessa-Chisinau gas pipeline, the reconstruction of the SPG Chisinau 2, as well as major investments in distribution networks in predominantly rural areas, in order to bring gas to the districts lacking access to gas network”, said Vadim Ceban.

The main investment directions for 2021

  • Continue the repair work of the Odessa-Chisinau main gas pipeline, length – 7,4 km
  • The reconstruction of SPG Chisinau-2 (1st stage) to improve the reliability of natural gas supply installations by replacing existing obsolete equipment and using a new automated type of SPG. Obtaining automation of gas management, record keeping and measurement processes, which increases reliability and provides new monitoring and control capabilities from a single dispatch center.
  • Construction of new gas networks with a total length of 145 km, of which 28,3 km of inter-rural networks for the development of the Republic of Moldova natural gas and 117 km within 65 localities to ensure access to the gas networks of about 2506 potential consumers.
  • Construction of 11 km of new networks (technical ring-tests), 65 PRG to ensure pressure and volume parameters to the final consumers according to the contractual conditions construction, upgrading of 2,9 km of gas pipelines, 188 PRG. Continue implementation of the automated technology parameter monitoring system in 14 SRG.

“All this will ensure the safe functioning of all elements of the system, the fulfillment of the contractual provisions regarding domestic supply, and the transit of natural gas,” said Vadim Ceban.

Liberalization…

In 2016, the Parliament of the Republic of Moldova adopted the new law on natural gas, which transposed European regulations: Directive 73/2009, Regulation 715/ 2009 and Directive 67/2004, which laid the foundation for a new gas legislation, explained Vadim Ceban, president of Moldovagaz’ Management Board. “Since 2016, in fact, the gas market has been declared open – meaning that every consumer can choose his supplier and participate in the gas market. Today we have 12 companies licensed on the gas market, with most of consumption directed to the population, which has a share of 33%,” he added. 34,5% of the gas in the Republic of Moldova is used in the energy system, while the rest of the economy uses about 28%.

“The Ungheni-Chisinau gas pipeline can already be very attractive to suppliers from Moldova and Romania respectively”, said Ceban, who also mention that the Republic’s regulatory framework will soon include backhaul operations. “Today we have the possibility of transiting 15 million cubic meters of gas per day, in reverse flow,” he said.

DOWNLOAD THE PRESENTATION OF VADIM CEBAN

While in 2019, natural gas was supplied to consumers by 10 license holders, in 2020 the dynamic of the gas market in the Republic of Moldova has been accelerating. “As of this year, trading gas at unregulated (negotiated) prices began. At the same time, the number of license holders for the supply of natural gas has increased from 17 to 22 companies. These changes have also been influenced by the reduction in the price of natural gas in the region,” said Vadim Ceban. “These companies have signed contracts with partners from Ukraine and they may also conclude contracts with companies from Romania”, he specified. “The situation is changing and alternative suppliers are already emerging, so that Iași-Ungheni-Chisinau gas pipeline can start to be used commercially.”

… and unbundling

For 2021, the gas market in the Republic of Moldova plans a wide range of reforms, including the implementation of the requirements of the natural gas transmission network codes (e.g. ensuring capacity reservation of interconnection points through auctions on the electronic platform, implementation of entry-exit transmission tariffs) and implementation the requirements of the gas market rules (e.g. implementation of the balancing platform, development of the competitive gas market).

In 2021, the restructuring of Moldovagaz company is also scheduled to be completed, which will reduce the number of affiliated companies from 26 to 11. There distinct companies will be set up SA “Moldovagaz” – trading company and gas importer, SRL “Gas Supply” – natural gas supplier to final customers in the Republic of Moldova, and SRL “Moldovatransgaz” – independent gas transport system operator, since 01.02.2021.

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