Electric Power, Natural Gas

December 18, 2024

Moldova says Gazprom made no Trans-Balkan gas capacity bookings for January

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HIGHLIGHTS

Pipeline could be alternative route for Russian supply

Russian flows to Transnistria set to stop at end-2024

Moldova urges energy savings under state of emergency

Russia's Gazprom did not book any capacity in the Trans-Balkan gas pipeline route for the month of January in the latest monthly capacity auction, Moldova's energy ministry said Dec. 17.

Gazprom currently supplies some 5.7 million cu m/d of gas via Ukraine to the breakaway Transnistria region of Moldova, but deliveries are expected to end from Jan. 1 due to the expiry of the Russia-Ukraine gas transit deal.

Under its winter plan published earlier this year, the Moldovan ministry said one of its planning scenarios was that Gazprom could continue to provide gas to Transnistria but via a different route using the offshore TurkStream pipeline and the Trans-Balkan link.

But the latest auction results suggest Gazprom -- which could not be reached for comment Dec. 18 -- is not currently planning to use the route for deliveries to Transnistria.

"According to data from the energy ministry, Gazprom did not make any reservations for transmission capacity for January 2025," the ministry said Dec. 17.

However, while Gazprom made no monthly booking for January, auctions for daily capacity in the Trans-Balkan line will continue to be held daily from Dec. 31 through the month of January.

Gazprom said at the end of November it was looking at options for the continued supply of gas to Moldova after the Russia-Ukraine transit deal expires.

The statement followed a meeting between Gazprom CEO Alexei Miller and Moldova's then energy minister Victor Parlicov -- who has since been dismissed from the role.

State of emergency

Given the uncertainties over Russian supply, a state of emergency in the Moldovan energy sector took effect on Dec. 16.

The Transnistria region on the left bank of the Dniester river is currently supplied with Russian gas delivered via Ukraine under a contract between Gazprom and Moldovagaz, but imports could be halted when the Russia-Ukraine transit contract expires at the end of 2024.

That could also impact operations at a thermal power plant in Transnistria, which produces electricity also used in the Republic of Moldova on the right bank of the Dniester.

The energy ministry said Dec. 17 that daily gas consumption in Transnistria in January, including at the power plant for the production of electricity for the Republic of Moldova, was estimated at 3.7 million cu m/d.

Forecast consumption would be lower -- at 2.3 million-2.7 million cu m/d -- if the power plant operated on coal, industrial activity was minimized, and consumption reduction measures were applied.

Under the state of emergency, the Moldovan authorities have also finalized measures to prepare for the 2024/2025 heating season and to mitigate the impact of the potential suspension of gas supply by Gazprom to Transnistria from Jan. 1.

For the Republic of Moldova, gas purchases for the entire winter season have been completed and gas stocks for the beginning of 2025 are estimated at some 110 million cu m, the ministry said.

That is enough to cover consumption requirements and ensure a security storage level for the country, it said.

Regarding electricity, the ministry said discussions between state utility Energocom and Romanian companies Nuclearelectrica and OMV Petrom were ongoing to supplement electricity imports.

Currently, over half of the electricity consumption needs of the right bank of the Dniester are covered by the Transnistria power plant, and the contractual obligations of the plant are valid until the end of December.

The ministry said electricity import capacity from the EU was insufficient to cover peak consumption requirements.

"For this reason, the authorities urge the population to use electricity rationally, to reduce consumption, especially during peak hours," it said.

"Authorities and operators in the energy sector are carefully monitoring the evolution of the situation and will adopt the necessary measures to minimize the impact of the crisis on the population," it said.

Moldovagaz measures

Gas supplier Moldovagaz, meanwhile, has also pledged to reduce its own energy consumption in the coming months.

"Distribution, transmission and other companies that are part of the Moldovagaz group will optimize the consumption of electricity and other energy resources to the maximum," it said in a statement Dec. 16.

It said the instruction was common during the heating season in Moldova, having been issued in previous years as well.

At the same time, Moldovagaz also urged household consumers to take certain measures to reduce consumption.

These include disconnecting heating systems during periods of absence, such as during the working day or during travel, reducing household temperature levels to 19-20 degrees C, and "rational" consumption for food and drink preparation.

Companies are also urged to organize the work schedule of employees so as to minimize the heating time of working space, to cut energy use for non-productive purposes, and identify fuel switching opportunities.


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