The Parliament of Moldova approved the creation and storage abroad of natural gas reserves in the amount of at least 15% of average annual consumption in our country to mitigate gas price shocks.
In particular, this is provided for by the corresponding amendments to the Natural Gas Law, which deputies adopted in the first reading. According to the changes, the government will take the necessary measures to purchase and store in gas storage facilities in the countries that are members of the Energy Community and the European Union, natural gas in an amount of at least 15% of the average annual consumption in our country over the past 5 years by October 1 of each calendar year. As Energy Minister Victor Parlicov noted, over the past 5 years, Moldova (the right bank of the Dniester) has consumed an average of about 1 billion cubic meters of natural gas, respectively, these reserves will amount to about 150 million cubic meters. At the same time, this volume also includes reserves of 45.6 million cubic meters, provided for in case of emergency situations. The head of the Ministry of Energy explained that the level of reserves in the amount of 15% of consumption must be ensured by the holder of the storage obligation, appointed by the government, starting from October 1, 2024. The increase in the volume of stored gas complies with EU standards and is designed to guarantee the safety and uninterrupted supply of gas. It is agreed that in order to mitigate sharp increases in natural gas prices and ensure the safe and reliable functioning of the natural gas market, in the spirit of solidarity with the member countries of the Energy Community and the European Union, the government will entrust, by its regulation, a natural gas supplier or trader with experience in dealing with natural gas and its storage, the obligation to store a certain volume of natural gas in storage facilities in member countries of the Energy Community and/or in EU countries. The exact volume of natural gas that will be stored will be determined by the government. Gas will be purchased during the summer, when prices are typically lower, for use in the winter, thereby providing consumers with affordable and predictable prices. The holder of the storage obligation will purchase natural gas through a competitive procurement procedure or in accordance with the rules applicable in the natural gas markets, at the trading platforms where natural gas is purchased. In exceptional cases, the holder of a storage obligation may purchase natural gas under direct contracts, provided that it demonstrates to NAER that the purchase price is competitive. At the discretion of the government, storage obligations may be replaced in whole or in part through an effort-sharing mechanism with one or more countries belonging to the Energy Community or with EU countries with natural gas storage facilities. The bill also regulates the certification procedure for a storage facility operator. The document also contains provisions for monitoring compliance with certification requirements by the National Agency for Energy Regulation. In addition, amendments to the law transfer European directives regarding the obligation of the operator of the natural gas transport system in Moldova to provide constant two-way physical capacity for the transport of natural gas at all connections with neighboring countries, in order to guarantee the security of natural gas supplies, establish a procedure for making an agreed decision regarding the method of cross-border distribution costs, create the legal framework necessary for the government to adopt a new Natural Gas Emergency Regulations and a Natural Gas Contingency Plan. Herewith, conditions will be established under which end consumers can continue to benefit from regulated prices for natural gas supplies if they decide to change suppliers. In particular, one of the provisions introduced by the amendments to the Gas Law concerns the so-called fairness component, which involves a one-time payment levied on the consumer in the event of a change of supplier and in the event that the financial deviation of the supplier exceeds 5% of the regulated income amount. The amendment is intended to remove ambiguity in the current wording and prevent the transition from a regulated market to a free or simultaneous conclusion of two contracts, one of which is concluded with a supplier subject to an obligation to provide public services, as happened this spring. Currently, some adopted provisions apply during a state of emergency, so the amendment to the law includes them in the basic legal framework. Amendments to the Natural Gas Law were developed by the Ministry of Energy with the support of the United States Agency for International Development (USAID) within the framework of the Energy Security Project of Moldova and the European Union within the framework of the project “Eliminating the Consequences of the Energy Crisis in Moldova”, implemented by UNDP in Moldova. The bill contains rules for the harmonization of national legislation in this area with the legislation of the European Union, arising from the obligations assumed under the Association Agreement and the Energy Community Treaty. Parliament must consider the legislative initiative in the second reading.// 09.11.2023 — InfoMarket.
