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    Ukraine promises gas supplies to support Moldova

Summary

With just two days before the current contract's expiry, Gazprom and Moldova are yet to agree a new one for November, but talks continue.

by: Joseph Murphy

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Natural Gas & LNG News, Europe, Top Stories, Security of Supply, Corporate, Import/Export, Contracts and tenders, News By Country, Ukraine

Ukraine promises gas supplies to support Moldova

The Ukrainian government has vowed to support Moldova with gas supplies, as the former Soviet Union grapples with severe shortages after its long-term contract with Russia's Gazprom lapsed at the start of the month.

In line with the government's decision, Ukraine's national gas transmissions system operator GTSOU will lend Moldova some 15mn m3 of gas, its CEO Sergiy Makogon said on Facebook on October 28. He said that Gazprom was exerting pressure on Moldova in a similar way it had on Ukraine in the past.

"It's time Europe began to respond to Gazprom's aggressive behaviour, which led to the energy crisis in the EU and Moldova.

Gazprom and Moldova agreed to a new one-month contract for supplies just hours before the previous long-term one expired at the end of September. According to Moldovagaz, half-owned by Gazprom, the short notice meant Gazprom could not book sufficient transit capacity via Ukraine in October and so had to cut shipments. Moldova is also paying much higher prices under the new arrangement.

With just two days before the current contract's expiry, Gazprom and Moldova are yet to agree a new one for November, but talks continue. Moldova declared a state of emergency over its energy crisis on October 22, approving emergency gas purchases.

Ukraine's national gas company Naftogaz also won a tender on October 29 to supply natural gas to Moldova, it said in a statement. The company said it was delivering 500,000 m3 of gas today to Moldova's state-owned Energocom. The Ukrainian company said it would continue to take part in such tenders, in line with Ukraine's commitment to support Moldova through the crisis.

Poland's PGNiG won a contract to supply 1mn m3 of gas to Moldova on October 25, and the European Commission has also weighed in with support, providing the country with a €60mn ($70mn)  grant to cover gas purchases.