MOLDOVAGAZ AGAIN ASSURES THAT IT BUYS RUSSIAN GAS ON BENEFICIAL TERMS

The Moldova-Russia joint company of Moldovagaz issued its new commentary on Monday "due to the current situation of the spot market", after the local mass media had published gas prices in Europe, which are allegedly thrice lower than what Moldova is paying.

The commentary said that the spot market of natural gas is remarkable for its seasonal price fluctuations: in summer gas is cheaper, and in winter it is more expensive.

"It would be more appropriate and correct to compare average annual prices. For instance, in 2019, on the basis of a long-term contract concluded with the Russian Gazprom Concern, Moldova was paying a price of US$233 per a thousand cubic meters at the entry to the republic. In case of a spot market, with an account of the cost of transportation till the Moldovan border, the price would be more than US$246. I.e. Moldova would have to pay almost US$14 million more for the past year. And an analogous situation will repeat in 2020, too", maintain Moldovagaz experts.

According to their forecasts, the purchase price for Moldova will be going down, and in 4Q2020 it will be below US$100 per a thousand cubic meters at the entry to the country.