Moldova will continue negotiations with Gazprom on the extension of the gas supply contract while maintaining the previous price calculation formula and hopes to sign this document by the end of the month - Andrei Spinu.
This was announced by the Deputy Prime Minister, Minister of Infrastructure and Regional Development of Moldova during a statement to the press, noting that at the same time, discussions will be initiated between Moscow and Chisinau this week to find a parallel solution to complex issues from the joint agenda regarding the repayment of the historic debt for gas of consumers from the right bank of the Dniester in the amount of $ 450 million and the introduction of the Third European Energy Package in the gas sector. Andrei Spinu said that such a decision was made after a meeting at the International Gas Forum in St. Petersburg with Elena Burmistrova, Deputy Chairperson of the Gazprom Management Committee, who is also the Chairperson of the Supervisory Board of Moldovagaz. Andrei Spinu noted that his meeting with the head of Gazprom, Alexey Miller, did not take place for objective reasons, expressing the hope that such a meeting would take place by the end of October. He said that he discussed with Elena Burmistrova the growth of gas supplies to Moldova in October, so that none of the consumers in our country would suffer from the shortage of gas and there would be no problems with the supply of electricity from the Moldavskaya GRES. Andrei Spinu said that he was assured that there would be no gas shortage. According to him, at present there is no reason to talk about problems with the supply of electricity from the Moldavian State District Power Plant to the right bank of the Dniester, since the supplied volumes are sufficient to cover all the needs for electricity. Andrei Spinu noted that this week the representatives of the Moldovan government will begin discussions on problematic issues of the joint agenda regarding the repayment of the historical debt for gas of consumers from the right bank of the Dniester in the amount of $ 450 million and the introduction of the Third European Energy Package in the gas sector, and the goal is to draw up a work plan. It is assumed that either the representatives of Gazprom will arrive in Moldova, or the negotiations will begin via videoconference, and only then they will continue in Moscow or in Chisinau in order to resolve the existing controversial issues and sign a contract. “We, Moldova, stand for a fair, transparent and conflict-free approach to solving these issues,” said Andrei Spinu.He also recalled that these issues have not been resolved for many years, and therefore Chisinau now proposes to extend the contract for gas supplies while maintaining the previous price calculation formula, and then find a solution to all controversial issues that have not been resolved earlier for a long period. The Deputy Prime Minister also noted that the Moldovan side considers the gas price set for October at $ 790 per 1,000 cubic meters to be unjustifiably high and inconsistent with the previous agreements. “We offered to extend the contract on the old terms of last or this year,” said the Deputy Prime Minister. According to him, if the previous formula for calculating the gas price remained the same, the cost of gas for Moldova in the IV quarter would have amounted to $ 214 per 1,000 cubic meters, and in the first quarter of 2022 - $ 280, and in the next two quarters it would be tied to the gas price on the German NCG exchange. Andrei Spinu said that regardless of the situation, the authorities already have a plan, just in case, for any events, which will be implemented by the government. “We are striving to sign a long-term contract with Gazprom at the best price to ensure the energy security of Moldova. At the same time, we are working with our external partners to develop backup scenarios using alternative sources and reducing gas consumption, ”said the Deputy Prime Minister. According to him, in any case, the government will develop projects to provide assistance to poor citizens, and assistance in the form of compensation for the increase in gas tariffs will be provided differentiated, depending on the volume of consumption, to different categories of groups of citizens, while the greatest support will be provided to the poorest citizens consuming the least gas. While the price of gas is not clear, the amount that will be required for compensation is not known either. Andrei Spinu said that subject to the extension of the old contract while maintaining the old formula for determining the price of gas, the budget will need about 20-25 million euros for compensation. He noted that so far, in the discussions with Gazprom, the gas price formula has not even been discussed, and it will be established in the course of discussions.// 11.10.2021 — InfoMarket
