Moldova Is Looking for Alternatives to Supply the Country with Gas from 2025

The contract on natural gas transit through Ukraine expires at the end of 2024. It was signed in 2019 by Russia’s Gazprom and Ukraine’s Naftogaz for 5 years. Kyiv has repeatedly stated that the transit of Russian gas will be stopped in 2025. This forces the Moldovan authorities to look for alternative options for supplying the country with blue fuel already today, logos-pres.md wrote. From the Ukrainian gas transport system, blue fuel flows to Slovakia (87% of the total volume) and Moldova (13%). From Slovakia, the gas goes further to Austria, to the largest gas hub Baumgarten, and from there to Hungary, Italy and other countries. Since December 2022, Moldovagaz has received gas from two sources: from the state-owned company Energocom and from Gazprom. Chisinau sends all Russian gas to unrecognized Transnistria, in exchange for electricity generated by the Cuciurgan TPP. Energy Minister Victor Parlicov reminds that under the current contract, Gazprom is obliged to supply gas to Moldova until 2026. If from the new year there will be no deliveries via Ukraine to the Transnistrian region, there are alternative technical solutions. One of the options is to transport Russian gas via Turkey and the Balkan countries. The 28th annual round table organized by The Economist took place in the Greek capital Athens on 2-4 July. At this forum, Victor Parlicov said that due to the need to diversify natural gas supply routes to Moldova and Ukraine, it is necessary to consider decisions on expanding the capacity of the so-called Vertical Corridor. In December 2014, Bulgaria, Greece and Romania signed a joint statement on natural gas in Brussels called the Vertical Corridor. Its concept is to connect the national gas networks of the three countries into a single system to increase the variability of gas supply from different sources and to different destinations. Over time, several countries in eastern, southern and central Europe, including Hungary, Austria and Slovakia, have joined the initiative. However, according to experts, the gas transit infrastructure within the Vertical Corridor will not be fully ready for operation in 2025; the actual completion date is not earlier than 2027. The Vertical Corridor initiative does not envisage specific gas transfer routes; it is an integration of various projects aimed at increasing the connectivity of European countries’ gas systems with supplies from Turkey, Azerbaijan (and other eastern countries). This initiative is now becoming highly relevant due to the possible cessation of transit through Ukraine. In January 2024, Moldova and Ukraine became members of the Vertical Corridor, which will allow transporting natural gas to Moldova and underground gas storage facilities in Ukraine. Thus, Moldova will access supplies from Turkey, Azerbaijan, as well as liquefied natural gas terminals in Greece (delivered there by sea).