After increasing gas transportation tariffs by about 50% from 1 September 2024, Moldova has become “the most expensive transit country in the region and possibly in the whole of Europe”, icis.com writes about this, referring to traders.
The source notes that this is the second such increase in delivery costs since the government decided to transfer the Republic of Moldova’s gas transportation system under the control of the Romanian company Vestmoldtransgaz (VMTG) in September last year.
European traders are unhappy with the Moldovan operator because it asked them to pay the difference for capacity booked before the sharp tariff increase. These are around ten companies operating regionally and have booked monthly or quarterly capacity for gas produced in southern Europe, which is transported via Moldova to storage facilities in Ukraine. They say the increase will undermine the competitiveness of one of the most attractive regional transit routes and block Moldova and Ukraine’s access to non-Russian gas supplies in southern Europe.
“This decision will not only harm the economic viability of the route, but will also place a heavy burden on Moldovan consumers, who will have to face ever-increasing bills.” – writes the post.
In a letter to Moldova’s energy regulator, the Ministry of Energy, VMTG and the Energy Community, Ukrainian gas grid operator Gas Transport System of Ukraine (GTSU) said that reverse flows along the Trans-Balkan route linking Southern Europe with Ukraine have “significantly facilitated cross-border trade opportunities in the region.” However, the State Customs Service estimated that before the introduction of the first VMTG tariff, the cost of gas transit from Greece to Grebeniki on the border with Ukraine was about €3/MWh. After the first increase, the total cost increased by 67% to €5.00/MWh and has now risen to €6.7/MWh.
Moldova is therefore the most expensive transit country in the region and possibly in the whole of Europe. The Ukrainian network operator said that the latest increase would “worsen” the situation and lead to a reduction in Moldova’s revenues.
As reported EADaily At the recent summit on energy security and regional cooperation in South-Eastern Europe held in Thessaloniki, the Minister of Energy of Moldova Victor Parlikov He called the Vertical Gas Corridor and the port of Alexandroupoli (through which Moldova is seeking to buy US LNG) “a viable alternative to the historical dependence on Gazprom.”
At the same time, the republican authorities say they are ready to fully resume direct gas purchases from the Russian consortium, “if the price offered by Gazprom is profitable.” Moreover, Chisinau has already asked for the development of alternative routes to Moldova if kyiv, as promised, limits the transit of Russian gas through the territory of Ukraine from the new year.
