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A new trunk gas pipeline Drochia-Ungheni is planned to be built in Moldova with total investments of 100 million euros.

A new trunk gas pipeline Drochia-Ungheni is planned to be built in Moldova with total investments of 100 million euros.

This is stipulated by the Development Plan of Moldovatransgas Gas Transmission Networks for 2022-2031, which was approved by the Management Board of the National Energy Regulatory Agency (ANRE). Construction of this object will be the largest investment within the framework of the named plan. As it is said in Moldovatransgas materials, according to the provisions of the Energy Strategy of Moldova till 2030 and the Law on Natural Gas, the transport operators are to ensure diversification of gas transportation routes. Works on designing and construction of the trunk gas pipeline Drochia-Ungheni were included in the Transport Network Development Plan of Moldovatransgas for 2020-2029. Later, the investment plan for 2021 provided for the development of a feasibility study for the construction of this facility. The feasibility study was prepared in the same year. The approved new Plan of Moldovatransgas gas transportation networks development for 2022-2031 stipulates that a new 88 km long trunk gas pipeline Drochia-Ungheni will be built till 2027, with 20 km to be installed in 2025, 40 km - in 2026 and the remaining 28 km - in 2027. Total investments including VAT will amount to 1 billion 944.8 million lei (100 million euro). It is planned that the trunk gas pipeline Drochia-Ungheni will be connected to the Iasi-Ungheni-Chisinau gas pipeline and will be laid in Drochia, Riscani, Glodeni, Falesti and Ungheni. Its length will be 87.5 km, diameter - 630 mm, pressure - 5.4 MPa, flow capacity - 3.27 billion cubic meters. According to Moldovatransgas, the construction of the trunk gas pipeline Drochia-Ungheni will ensure interconnection of gas transportation networks in the direction Romania-Moldova-Ukraine, which will improve competition on the market and increase security of gas supply in the Balkan region and Eastern Europe. It will enable to use natural gas storage facilities in the largest natural gas storage facility located in Ukraine with total storage capacity of 32 billion cubic meters (over 25 billion cubic meters of which in Western Ukraine). Besides, development of the regional natural gas market and strengthening of Moldova's role as a natural gas transit corridor will be ensured. Security of natural gas supply to Moldova will be provided by means of diversification of routes and sources of supply; a new transportation route of natural gas in the direction Romania - Ukraine (western region) will be created. Operation of the trunk gas pipeline Drochia-Ungheni will enhance the attractiveness of this transit route; create conditions for expansion of gas use along the mentioned route; improve operation of the gas transportation system of Moldova, ensure security of energy supplies to the country; facilitate development of competitive natural gas trade markets and ensure their regional and European integration; ensure fulfillment of gas storage obligations by suppliers, established in accordance with sectoral legislation (creation of opportunities to buy natural gas in summer time (at relatively low purchase prices) with their storage in underground deposits and delivery in winter time, when gas price reaches high values. Moldovatransgas draws attention to the fact that storage of natural gas in Ukrtransgas underground gas storage facilities is advantageous given more competitive price than in Romanian gas storage facilities and larger total capacity, which considerably exceeds gas storage capacities in Romania - respectively, 32 billion cubic meters in Ukraine (of which 25.6 billion cubic meters in the western region of Ukraine) and 3.5 billion cubic meters in Romania. Moreover, the special customs regime in Ukraine related to gas storage can be combined with the special customs regime in Ukraine, which allows temporary storage of natural gas in Ukrainian warehouses for 1095 days without payment of duties and taxes. The combination of these two services leads to a significant reduction in cross-border tariffs at the interconnection points and stimulates the interest of potential network consumers in the preferential customs regime and storage of natural gas in warehouses in Ukraine with the most competitive tariffs in the region. The use of the Drochia-Ungheni gas pipeline in bilateral mode: with the provision of natural gas transportation to and from Ukrainian gas storage facilities, will connect the network system of Ukraine and Romania, thereby improving market competition and security of gas supply in the Balkan region and Eastern Europe. // 26.12.2022 - InfoMarket.

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