Moldova Became the Most Expensive Country in the Region for Gas Transit

With the increase of gas transmission tariffs by about 50% from 1 September 2024, Moldova has become “the most expensive transit country” in the region and possibly in the whole of Europe. This is announced by the outlet icis.com with reference to traders, noting that this increase in tariffs for gas transportation by about 50% is the second in a year, since the company Vestmoldtransgaz took over the management of the gas transport system of Moldova on 19 September 2023, reports noi.md. European traders also criticized Moldovan gas operator Vestmoldtransgaz for demand to pay the difference for capacity booked before the steep tariff hike, i.e. to pay higher transit tariffs for capacity booked before the September 1 price hike. At least 10 companies operating at the regional level and local traders who have reserved monthly or quarterly capacity for gas received in Southern Europe and transported through Moldova to Ukrainian storage facilities have been asked to pay the difference between the old and new tariff. Traders admit that the increase undermines the marketability of one of the most attractive regional transit routes and will block Moldova’s and Ukraine’s access to non-Russian gas supplies in southern Europe. An international trader told icis.com that the decision would not only damage the economic viability of the route, but would also place a heavy burden on Moldovan consumers who would face ever-increasing bills. Another trader said the increase would affect the entire region. In a letter sent to the Moldovan energy regulator, the Energy Ministry, VMTG and the Energy Community, Ukraine’s gas network operator, Gas Transmission System of Ukraine (GTSU), said reverse flows on the Trans-Balkan route linking southern Europe to Ukraine had “significantly facilitated cross-border trading opportunities in the region”. The Ukrainian operator has calculated that before the first VMTG tariff was introduced, the cost of gas transit from Greece to Grebeniki at the Ukrainian border was around €3/MWh. After the first increase, the total cost rose by 67% to €5.00/MWh and now it is €6.7/MWh. At the same time, Moldova is the most expensive transit country in the region and possibly in the whole of Europe, traders say. The Ukrainian network operator said the latest increase would “worsen” the situation and reduce Moldova’s revenues.