Gas Prices Rise in Europe: Moldova May See Another Tariff Increase

Natural gas prices on the European market have exceeded €75 per MWh, putting additional pressure on Moldova’s procurement costs. The authorities do not rule out another increase in tariffs for consumers, although the final decision will be made by the National Agency for Energy Regulation (ANRE), Radio Moldova reports. “The decision on whether a tariff adjustment is warranted will be made by ANRE,” Energy Minister Dorin Junghietu said ahead of the government meeting on September 8. According to the minister, competition between the European and Asian markets for liquefied natural gas from the United States is becoming increasingly intense. “In the first two weeks of September, around 14 or 16 LNG cargoes were scheduled to be delivered. Fourteen or 15 of them were from the United States and one was from Nigeria for the European market. Nevertheless, the pressure remains,” Junghietu said. At the same time, European underground gas storage facilities are currently around 66% full, while competition for available supplies is helping to keep prices high. “The 20% of liquefied natural gas that used to enter the global market from Qatar is currently unavailable. European underground gas storage facilities are around 66% full today, and there is still pressure on gas supplies and injections into European storage facilities,” the minister explained. According to him, additional pressure on the European market could emerge at the end of September, when the pipeline supplying Spain with gas from Algeria is scheduled to be shut down for maintenance. This could affect supplies if the Strait of Hormuz does not reopen. A day earlier, PAS MP Vasile Gradinaru also did not rule out another increase in natural gas tariffs in Moldova. According to him, the current tariff does not fully cover costs, resulting in accumulating negative deviations. Any further tariff adjustment will depend directly on developments in international markets.