Energocom will supply about 20 million cubic meters of gas to Moldovagaz in May according to the formula it established, including the TTF Front Month index.
The state-owned company announced this, noting that it won a tender for the supply of natural gas in May, initiated by Moldovagaz on an electronic trading platform managed by BRM East Energy, a local branch of the Romanian Commodity Exchange. Previously, during the state of emergency, the Commission for Emergency Situations obliged Moldovagaz to purchase gas from Energocom for reasons of energy security. This is the first auction in which Energocom participated on the BRM East Energy platform. Today there were 3 registered bidders at the auction. “The exact price of gas supplied by Moldovagaz in May will be known on May 1, as it is determined by the average daily closing of the TTF indicators for the next month (Month Ahead). I am confident that the Energocom team has the necessary experience and competence to find partners and competitive offers in international markets, as well as compete in the increasingly liberalized local market,” said Acting Director of Energocom Victor Binzari. In turn, Alexandru Slusari, a member of the Administrative Council of the state-owned company, said that, despite the fact that the Moldovagaz company entered today’s auction with a complex price formula and some unknown elements, the professionalism and experience of Energocom specialists allowed the state-owned company to win this auction and offer lower price than expected from Gazprom in May. Alexandru Slusari explained that if there are no explosive fluctuations in gas prices on the exchanges in the next 7 days, tentative calculations show that Energocom will supply gas to Moldovagaz next month at a price of approximately $350 per 1 thousand cubic meters. In his opinion, the dynamics of exchange trading, in particular in Romania, shows that in the coming months the price of gas purchases will remain in the region of $300-350 per 1 thousand cubic meters, which will allow us to achieve a significant reduction in tariffs, long expected and deserved by the population and the national economy. A member of the Energocom Administrative Council believes that it is also necessary to change the methodology for setting tariffs, which in the current conditions cannot be based on the average annual gas purchase price and should be more flexible. Moreover, he believes that in the summer Moldovagaz should announce an auction for the entire cold season of 2024/2025, and then it will be possible to maintain this low purchase price, regardless of the situation on the stock exchanges in the fall-winter. “Our country deserves a stable period with low and predictable prices for natural gas,” emphasized Alexandru Slusari. It should be noted that BRM East Energy began holding tenders for the sale of gas to industrial consumers in April. From January 1, 2025, all large non-residential consumers will be required to make purchases on the exchange, in accordance with recently adopted amendments to the Natural Gas Law. // 23.04.2024 — InfoMarket.
