INTERCONNECTION PIPELINE OF THE NATURAL GAS TRANSMISSION SYSTEM IN ROMANIA WITH THE NATURAL GAS TRANSMISSION SYSTEM IN THE REPUBLIC OF MOLDOVA

Historically, the natural gas transportation networks of the Republic of Moldova were part of the former Soviet Union common network. Its market has set a limited number of supply sources, with obsolete infrastructure, huge losses and inefficient management. Our dependence on energy sources has made us vulnerable and has shown the importance of diversifying these sources. When a country relies on another as a supplier of the largest part of its needs in energy agents, it exposes itself to intimidation and manipulation, which ultimately affects the citizens of this country.

The contract between "Moldovagaz " and "Gazprom" on the delivery and transit of Russian natural gas expires on 31 December 2019. The geopolitical situation in Ukraine could have a negative role in the supply of Moldova with natural gas from the Russian Federation, as the transit of Russian gas could be stopped starting with the year 2019. In view of the above, the existence of alternative sources of natural gas supply is vital for the economy and energy security of RM.

In the context of the energy strategy of the Republic of Moldova, on June 11, 2013 the Memorandum of understanding between Romania and the Republic of Moldova was signed having as aim the construction of an interconnector between the natural gas transmission systems of the two countries. The construction of the said interconnector consists of 2 phases: Phase I on the Iaşi-Ungheni segment (completed on 31 December 2015) and Phase II on the Ungheni-Chişinău segment.

In 2016 a feasibility study was developed for the construction of the natural gas transport pipeline Ungheni-Chişinău. All available information on the environmental impact study has been presented to district councils and mayoralties of the locations potentially affected by the pipeline route, have been placed in public spaces, on official Web sites, have been discussed within public debates. The public debates were carried out in accordance with the action plan agreed by stakeholders in April 2016.

Main components:

  1. Pipeline, Diameter - DN 600, Length - 120 km, Peak capacity - 250 000 Nm³/h;
  2. 5 Block Valve Stations;
  3. 3 Gas Pressure Regulation Stations (GPRS);
  4. 3 launching PIG (pipeline inspection gauge) stations;
  5. 3 receiving PIG stations.

Project implementation phases:

  1. 2016 – completion of Feasibility Study (FS) and Environmental and Social Impact Assessment (ESIA);
  2. April – May, 2016 - public debates concerning ESIA;
  3. July 7, 2016 – issuance of the Environmental Permit by the Ministry of Environment of RM;
  4. November 22, 2016 - signing of the contract for design services between Ministry of Economy, Vestmoldtransgaz S.E. and Transgaz J.S.C.;
  5. May 27, 2017 – Gas Law was adopted;
  6. June 9, 2017 – Law no. 105 declaring construction of the Ungheni-Chisinau gas pipeline as utility of public interest was adopted;
  7. September 6, 2017 – Urbanistic Certificate issued;
  8. December 2017 – the SE Vestmoldtransgaz released to privatization;
  9. March 2018 – the contract for privatization signed between the Agency for Public Property of RM and SRL Eurotransgaz;
  10. June 12, 2018 – the Government Order no. 84-d was issued, empowering Moldova Energy Projects Implementing Unit (MEPIU/UCIPE) to ensure, on behalf of the Ministry of Economy and Infrastructure of RM, to undertake the necessary measures for expropriation of land to be used for the gas pipeline construction;
  11. June 14, 2018 – MEPIU/UCIPE started the expropriation procedure (delivery of Notifications, public consultations and other appropriate procedures);
  12. September 6, 2018 – the contract for privatization signed between the Agency for Public Property of RM and SRL Eurotransgaz, became valid after the signature of the Finalization Certificate.

Expected benefits of the project:

  • The construction of the pipeline presents an investment in the security and diversification of the gas supply to the Republic of Moldova, emerging from the fact that Moldova currently has a single source of natural gas import. Although RM is not a big gas consumer, however, the gas is widely used, so that a supply interruption, not to mention its cessation, would cause significant damages to the national economy and the society.
  • After the adoption, in 2009, of the energy strategy for the period 2013-2020, which highlighted the importance of diversifying sources of natural gas supply by connecting to Romania's transportation networks, market liberalization and integration in the EU energy system, the gas pipeline construction will be an imminent step in implementing this strategy;
  • Diversification of supply sources featured also in the list of commitments undertaken by Moldova with the accession to the Energy Community (in 2010) and the decision to transpose the Energy Package III, as well as to take commitments towards the EU in the Agreement on Association signed in 2014. Thus, the construction of the gas pipeline will contribute to fulfilling Moldova's commitments towards the Energy Community and the EU;
  • The construction of the gas pipeline has aroused interest from Romanian part, which has initiated works to expand and modernize its infrastructure in order to ensure a feasible interconnection, which strengthens cross-border links and sustainability of the project;
  • The pipeline construction will involve deep reforms in the country's gas sector - tariffs reform, productive unbundling of the manufacturer and supplier from the transporter and distributor, enhancing of ANRE independence and institutional capacities;
  • The construction of the pipeline could allow gas supply to Ukraine as well, using the existing Moldovatransgaz network, which would give access to the storage capacities, which Moldova does not possess, opening Moldova’s market to suppliers from Ukraine (and vice versa);
  • The investments in the project will ultimately contribute to improving the quality and reliability of the natural gas supply services rendered to the population of the Chisinau municipality and, eventually, in the country.