Economics

UNGHENI-CHISINAU GAS PIPELINE BUILDING WILL START WITH ERECTING ADMINISTRATIVE COMPLEX IN GHIDIGHICI

16 january, 2019

The Romanian company Transgaz has started works on building the Ungheni-Chisinau gas pipeline, announced the Moldovan Ministry of Economy and Infrastructure.

According to Minister Chiril Gaburici, an agreement on building an administrative complex in the Chisinau suburban community of Ghidighici was signed on Tuesday, which marks the beginning of gas pipeline building and the implementation of a number of measures for using and technical maintenance of the Iasi-Ungheni-Chisinau pipeline.

"The project implementation will lead to a sustainable development of the national economy. We will get an alternative source of gas, which will contribute to strengthening the Moldova's energy security. Besides, the project means lower prices on natural gas for our citizens", said the minister.

As Infotag has already reported, in 2018, the Romanian gas transportation operator Transgaz bought the Moldovan operator VestMoldTransGaz, including the Moldovan section of the Iasi-Ungheni gas pipeline, by means of its Moldovan daughter Eurotransgaz. According to the agreement, the Romanian company is obliged to invest at least 93 million euros in extending the pipeline to Chisinau within two years.

Before, Moldova and Romania had built a 43-km transfrontier gas pipeline Iasi-Ungheni, commissioning it in 2014, though it has not become functional since then. The main goal of the pipeline is to exclude Moldova's dependence on one source of natural gas - the Russian Gazprom. The pipeline cost accounted for 26.5 million euros, 80% of which were covered by Romanian and European partners.

The next important stage of the project will be the building of a gas pipeline Ungheni-Chisinau in the territory of Moldova, as well as the gas pipeline Onesti-Letcani and a compressor station in the territory of Romania to supply gas to Moldova.

The completion of the project will mean the unification of EU countries' markets with the Eastern Partnership countries and ensuring security of natural gas supplying to the region.

Initially, the project was planned to be completed before the end of 2018. Then, after signing the contract with Transgaz, it was about the beginning of building in June, then - in autumn.

The length of the Ungheni-Chisinau gas pipeline will account for around 120 km. It will be annually supplying to Moldova around 1.5 billion cubic meters of gas, which will completely cover the needs of the mainland Moldova.

The European Bank for Reconstruction and Development and the European Investment Bank will allocate credits worth 41 million euros each for the project implementation, while the EU will provide a grant of 10 million lei.

So far, Moldova is completely dependent on the Russian natural gas, provided by Gazprom.

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