Pipeline to Connect the Gas Networks of Romania and Moldova
Iasi - Ungheni gas pipeline that will connect the gas networks of Romania and Moldova, will involve construction costs of 19.2 million Euros and will annually transport 1.5 billion cubic meters, equivalent to about 15% of Romanian annual output.
Romanian Prime Minister Victor Ponta and Moldovan Prime Minister Vlad Filat announced that the pipeline will be operational in 2013.
The interconnection will form a critical pillar of Moldova's energy security, providing access to alternative sources of gas than Russian; accordingly Moldova will no longer depend on a single gas supplier.
The bi-directional pipeline will have a length of 43.2 km, of which 32.8 km in Romania. Construction is estimated to take 17 months and the investment value will be updated according to the evolution of prices, it said in a draft government decision.
Major gas producers in Romania are state-owned company Romgaz Medias and OMV Petrom, controlled by Austria's OMV. The two producers provide about 10 billion cubic meters annually, equivalent to two-thirds of requirements.
"We aim to carry out the works to begin in February and be completed by November next year. We plan in about 30 days, to announce tender to select executor, and a period of seven months is sufficient to achieve work, "said President of the National Agency for Mineral Resources of Romania, according to a press release of the government from Chisinau.
Investment in this project from Romania is about 12 million. EU will provide Moldova a grant worth EUR 12 million for the construction of pipelines in Moldova, the length of 8.9 km, and to build the necessary infrastructure crossing the River Prut, a cost that is not included in the total cost the pipeline.
Part of this system is a gas measuring station, including filters and separators to reduce pressure, protective equipment, for which the EU target will provide separately a grant worth €5 million and 7 million Romanian Moldova.
"Concrete steps have been taken so far and should start as soon as completion of the construction of the pipeline. For us it is very important this project", commented Filat.
Economic experts have commented that under current conditions of Russia being the sole supplier of gas to Moldova, country would face a doubling of the import price of gas by 2015.
Text: Silviu Molnar