Interconnection: Moldova's short-term priority

Moldova's short-term energy security priority is clearly interconnection, explained Iulian Groza, Deputy Minister of Foreign Affairs and European Integration, Government of the Republic of Moldova, in his speech at the Romania Oil & Gas conference.

According to Mr. Groza, Moldova has agreed to build an alternative pipeline interconnector to connect the country to the European gas network through Romania, and had recently finalized the first phase of the project: Iasi-Ungheni gas pipeline. “We're now working on the second phase which is to connect the pipeline with the main consumer, Chisinau, the capital, which consumes around 50% of the gas on the right bank of Moldova,” he said, adding that a gas ring around Moldova is also planned to ensure alternate gas supplies.

“We don't intend to suspend the import of gas supplies from the Russian Federation,” he interjected. “Our intention is to ensure a full alternative."

The interconnection, he said, should be fully implemented by the end of 2016.

“It's our aim that in 2018-19, when the gas of the shores of the Black Sea will be explored, Romania will already be able to supply to Moldova almost 50% of our needs,” said Mr. Groza, who also mentioned the future viability of using Southern Corridor gas in Southeastern Europe.

Moldova is really at a crossroads between the European Union and Russia, said Mr. Groza. On the one hand, Moldova is aiming to become a member of the EU in the foreseeable future and is a member of many southeast Europe cooperative initiatives and processes, according to Mr. Groza, but it is still part of the economic dimension of the Commonwealth of Independent States.

One fact sticks out. According to Mr. Groza, Moldova has historically been 100% dependent upon supplies of natural gas from one source: Russia's Gazprom. “And it was like this until recently,” he quipped.

Moldova, he reported, is poorly connected in terms of both gas and electricity, but is looking for solutions to ensure its energy security, implementing tools and instruments towards realizing the country's diversification, joining the Energy Community and it has now begun implementing the 3rd Energy Package.

Now, he said, the country is focusing on four priorities: efficiency, interconnection, alternatives and co generation – all priorities within Moldova's overall strategy.

Regarding gas supplies, Mr. Groza said that Moldova has looked into its prospects for LNG development, but has no gas storages, which is expensive for a country with consumption of only 2.3 BCM/annum.

Meanwhile, he reported that Moldova would like to look into its shale gas potential and has plans to review legislation and create an investor friendly climate for doing that.

Offering energy security perspectives from Hungary, Ambassador Botond Zakonyi, Embassy of Hungary to Romania, gave his remarks. He recalled that the natural gas disruptions in Central and Southeast Europe in 2006 and 2009 had prompted the Hungarian government to find alternative sources and diversify supply routes.

Enhancing Hungary's gas storage capacity, he said, up to 6.1 BCM was one measure taken. Ambassador Zakonyi remarked: “Hungarian storage capacity is now the 4th biggest in the EU.”

Secondly, Hungary has backed interconnection with its neighbors and is now connected to most of them.

“The next step is to ensure bi-directional or reverse flow on the Romanian and Croation gas interconnectors,” he explained, “and to start commercial gas supplies on the Slovak-Hungarian gas pipeline.”

Hungary, he said, is also a proponent of the North-South gas corridor, which would enable the flow of LNG from terminals in Poland and Croatia to the Visegrad 4 states: Hungary, Poland, Czech Republic and Slovakia.

For Hungary to access natural gas sources from the Caspian region, noted the Ambassador, the country will need to work closely with Bulgaria and Romania.

Despite the rumors of the pipeline's demise, he offered, “The other possible way to get access to non Russian gas is Azerbaijan–Georgia–Romania Interconnector (“AGRI”) project, aiming to bring gas from Azerbaijan via pipeline to the planned LNG terminal in Georgia and then shipped to a regas terminal in Constanta (Romania).

“From the Romanian port the gas will be fed into the pipeline system and transferred to Hungary as well,” said Ambassador Zakonyi.

Drew Leifheit