Romanian gas is cheaper than the Russian one and will make Moldova less dependent on energy, expert

The natural gas that can be supplied from Romania to Moldova is cheaper than the gas supplied by Russia’s Gazprom and Moldova’s connection to the European gas market through Romania will help strengthen the country’s energy independence, considers Tudor Cojocariu, expert of the Romanian Center for European Policies. He elaborated on this viewpoint in an analysis for Info-Prim Neo that was published on March 19, 2012. According to Tudor Cojocariu, after the joint meeting held by the Moldovan and Romanian executives in Iasi, the two Prime Ministers announced that the Iasi – Ungheni gas pipeline will be ready this year. It has a great importance as it will enable Moldova to negotiate with Gazprom in a more relaxed way and to be connected to the European gas market through Romania. Moldova will be thus less dependent as regards the sources of energy. ”A bold solution that can be implemented if there is the necessary political would be to effectively integrate Moldova into the energy market of Romania. The natural gas consumption in Moldova is 1 billion cubic meters, almost ten times lower than the internal production of Romania. Currently, the internal market of Romania is strictly regulated – the internally sourced gas (cheap) is merged with the imported one (dear) and the resulting average price is paid by the consumer, which is the internal price of gas that is lower than the import price (it is in fact a kind of cross subsidization). If thinking creatively, the Romanian authorities may decide to export a part of the gas to Moldova. Anyway, the EU obliges Romania to liberalize the energy market and to become integrated into the regional networks, to have links with the gas pipes of Hungary (where a gas pipeline already exists) and of Bulgaria (where one is to be built). The gas pipeline to Moldova can thus become a part of Romania’s broader energy strategy,” said the expert. “Moreover, the recent developments as regards the internal production – the possible exploitation of shale gas and the discovery by Petrom – ExxonMobil of 42 – 82 billion cubic meters of gas in the Neptun platform in the Black Sea – can essentially change the situation. Thus, Petrom may add the equivalent of the gas consumption in Moldova for 42 years to the internal production of Romania.” Tudor Cojocariu said that they are currently discussing the possibility of sharing the costs for building the Iasi-Ungheni gas pipeline between the European Commission through the Joint Operational Program Romania – Ukraine – Republic of Moldova - one third and Romania –– two thirds. Theoretically, Bucharest will have to cover the costs that are to be incurred by Chisinau. Given that Romania contributes 50% of the funds to the abovementioned program, in fact it would cover about 80% of the costs of the gas pipeline that are assessed at €19 – 20 million.