Transgaz Closer to Taking Over Operation of NTS in the Republic of Moldova
The Moldovan parliament has adopted in the first reading a draft law that will transfer the functions of the current gas transmission system operator Moldovatransgaz, whose majority shareholder is Gazprom, to Vestmoldtransgaz, which is wholly owned by the Romanian company Transgaz, according to Moldovan media.
It is about the draft amendment to Law No 108/2016 on natural gas adopted by the Parliament of the Republic of Moldova. The document was supported by the MPs of the ruling party, the Action and Solidarity Party (PAS) and rejected by the elected members of the Communist and Socialist Bloc (BCS). With this vote, the first steps are taken for the takeover of the operation, dispatching and exploitation of the National Gas Transmission System (NTS) of the Republic of Moldova from Moldovatransgaz, majority owned by Gazprom, by Vestmoldtransgaz, majority owned by the Romanian gas transmission company Transgaz. The need for the draft law is determined by the legislative vacuum regarding the express basis for licence withdrawal in case of non-compliance with the legal requirements on unbundling, independence, and certification of the gas transmission system operator. Mandatory unbundling of energy transmission operators is a European Union requirement that had to be met by 2021.
On 31 May 2023, the Energy Community warned the Republic of Moldova about shortfalls in this chapter. Thus, in order to continue operating as a gas transmission system operator, Moldovatransgaz must be certified by ANRE as an unbundled gas transmission system operator.
The Energy Community is an international organisation founded in 2005. It brings together EU Member States and countries such as Albania, Bosnia and Herzegovina, North Macedonia, Georgia, Republic of Moldova, Montenegro, Serbia, and Ukraine to create an integrated pan-European energy market.
On 12 June, Moldovagaz reported that it had informed the National Agency for Energy Regulation (ANRE) about the impossibility to submit within the deadline all the necessary documents to complete the process of unbundling and certification of the gas transmission company Moldovatransgaz according to the model of the Independent Transmission Operator (ITO) in accordance with the previously adopted corporate decisions, as well as the Action Plan, approved by ANRE.
“First of all, this is due to the lack of consensus among the main shareholders of the company on some issues, which should have preceded the approval of the documents necessary to apply for certification of SRL Moldovatransgaz. SA Moldovagaz declares its full openness and readiness for constructive cooperation in the process of further fulfilling the requirements of the country’s legislation in the natural gas industry,” according to Moldovagaz.
The Moldovan Energy Minister Victor Parlicov blamed Gazprom, which owns half of Moldovagaz shares. He said Gazprom opposes the de-monopolization of the gas market and the independence of the gas transmission system from the supply system in the Republic of Moldova.
The gas supplier still has a few months to complete the process, after which the Agency will be able to initiate ex officio the unbundling and certification of the transmission system.
Next steps
After the vote and promulgation of the law, which received 55 votes in favour from the 80 elected members present, 15 against, while 9 MPs abstained, the next steps are the takeover of the operation, dispatching and exploitation of the National Gas Transmission System of the Republic of Moldova from Moldovatransgaz, which is 63% owned by Gazprom, by Vestmoldtransgaz, in which Transgaz is the sole shareholder.
Set up in 2014, Vestmoldtransgaz owns and manages the gas pipeline network in the west of the Republic of Moldova and provides gas transmission services in this country. In 2018, it was taken over by Eurotransgaz SRL, a subsidiary of SNTGN Transgaz SA, operator of the Romanian gas transmission system.
