Moldova urges neighbouring gas grid operators to increase Trans-Balkan capacity

LONDON (ICIS)–Moldova has urged for increased capacity in reverse flow along the Trans-Balkan pipeline to facilitate larger regional gas imports amid energy curtailment risks.

Speaking to ICIS, Constantin Borosan, secretary of state in the country’s ministry of energy said Moldova is ready to find a solution to increase compression along the route for security of supply reasons.

Borosan said the capacity in reverse flow at the Grebenyky cross-border interconnection point with Ukraine should increase from just over around 4,5 million cubic metres (mcm)/day of interruptible capacity up to its technical firm capacity of about 10 mcm/day.

However, in order to facilitate the increase, upstream transmission system operators such as Bulgartransgaz would have to increase pressure on the Romanian border by running the Kardam compressor stations.

TWO PROPOSALS

Moldova has proposed two options.

The first would be for gas transmission system operators in transit countries, Bulgaria, Romania, Moldova and Ukraine to share the costs of increased pressure in the Trans-Balkan pipeline.

Failing that, Moldova said that for running the compression station in Bulgaria which will allow to increase gas transportation capacity at IP Grebenyky, will be needed 6,300 MWh in kind of fuel gas.

However, if Moldova will pay for that gas, then the only company allowed to use the increased capacity would be the Moldovan state wholesaler Energocom, Borosan acknowledged.

“From our point of view, increasing the gas transmission capacity in reverse flow on the Trans-Balkan pipeline is about security of supply,”

Borosan said the situation was urgent because Moldova has already secured gas supplies for winter in the Balkan region and is only expecting to import it into underground gas storages in Ukraine via the Trans-Balkan pipeline.

He pointed out that a recent September interruptible capacity auction had to be cancelled because it was oversubscribed.

“The tender had to be cancelled after three days and 13 rounds of auctions,” he said.

CURTAILMENT RISK

Gazprom may retaliate after the country said it did not intend to pay an alleged historical debt which the Russian producer estimates at $709m.

A recent international audit disproved the debt but Gazprom said it strongly disagreed with the results of the report.

Gazprom’s response is now sparking fears it may cut gas supplies to Transnistria.

The Russian-controlled breakaway province which is not recognised internationally receives around 2bcm/year of gas from Gazprom, which is mostly used to generate electricity.

Most of this electricity is supplied back to Moldova.

Moldova no longer imports gas for its own needs but if Gazprom suspends deliveries to Transnistria, it may have to cover demand in both to ensure sufficient supplies to households and for electricity production.

The volumes bought in the Balkan region and stored in Ukraine could help tide it over the peak winter months.

They are also helping the country to make major savings, as the gas bought in the Balkan region is on average €25.00/MWh cheaper this month than the price Moldova would have to pay Gazprom for imported gas under its long-term contract.

REGIONAL RESPONSE

The Ukrainian gas grid operator, GTSOU supports Moldova’s bid and even approached colleagues at the Bulgarian gas grid operator Bulgartransgaz with a plea to increase compression between July and September 2023, according to a letter seen by ICIS.

A source close to GTSOU told ICIS the operator could provide 4.7mcm/day as virtual reverse flows and another 2mcm/day as physical flows at the Grebenyky IP.

The Energy Community, an international institution supporting Ukraine and Moldova in their market reform bids, has also approached Bulgartransgaz with the same request, according to correspondence seen by ICIS.

So far, there has been no official response.

Bulgartransgaz did not respond to questions by publication.