Romanian Government Approves Gas Pipeline between Romania and Moldova
The Romanian Cabinet has approved the Iasi-Ungheni gas pipeline project to allow interconnection of gas transport between Romania and Moldova.
In his announcement, Romanian Prime Minister Victor Ponta stressed that that project was of strategic importance and political cooperation between the two countries.
"It is about a draft law agreed for longer time at the principle, political discussions level, but which was never translated into practice, for no matter what reasons, it is less important, we approved today the draft law on the approval of the technical –economic indicators, investment objectives, interconnection pipeline of the gars transport system in Romania, on Iasi – Ungheni route. This time, we approved further on and there will be achieved this interconnection pipeline between Romania and the Republic of Moldova, a strategic and extremely important political project for the cooperation between Romania and the Republic of Moldova," said Ponta.
The pipeline project, both in terms of priority and urgency of the project's completion, is one of the few economic projects which have received the open support of both Prime Minister Ponta and the of the Romanian President Traian Basescu..
In early May, the Romanian President said "the complet of Iasi - Ungheni pipeline, which will connect the gas systems of Romania and Moldova, must keep the target to be completed by the second half of 2014."
President Basescu stressed that all political parties in Romania agreed on the approach on dealings with the Republic of Moldova and backing the Iasi - Ungheni gas pipeline project.
The pipeline will transit 1.5 billion cubic meters annually. Construction costs are estimated at 20 million Euros with the European Union providing partial funding.
Iasi – Ungheni is part of the close economic cooperation between Romania and Moldova and also represents a second alternative import route for gas imports from Gazprom to Romania. Another alternative import route is the Arad - Szeged (Hungary) pipeline, through which insignificant quantities are delivered.
Once operational, Romania believes that the pipeline will be an important asset in the annual gas price negotiations between the Ministry of Economy and Gazprom.
Every year, the price paid by Romania to Gazprom becomes subject of political debate. Romania imports most of the gas from Gazprom at a price almost three times higher than domestically extracted gas, a situation enhanced by the lack of networking with other sources and suppliers of gas.
Finding alternatives gas sources to Gazprom supplies is also a current concern of the Executive in Moldova.
In March, after a meeting of cabinet to find a plan for recovery of the energy sector, Prime Minister Filat stressed that it was necessary that Moldova must diversify gas and electricity suppliers and not to be dependent on current providers.
By Silviu Molnar