Bulgaria, Moldova sign natgas transmission deal

Bulgartransgaz and its Moldovan counterpart, state gas supplier Energocom, signed contracts for natural gas transmission to Moldova through the network of Bulgartransgaz, for the use of a Virtual Trading Point and for the purchase and sale of natural gas for balancing, Bulgartransgaz said in a statement on Thursday.

"The signed documents create an opportunity for Moldova to diversify and increase the security of natural gas supply thanks to the ensured access to alternative sources - the Southeast Europe liquefied gas terminals, as well as pipeline gas from Azerbaijan and other alternative suppliers," the statement added.

At the start of October, the Greece-Bulgaria gas interconnection was commissioned which allows increased deliveries of both pipeline gas from Azerbaijan and LNG through tanker deliveries at the Greek terminal at Revithoussa. A second, floating LNG terminal is planned near Alexandroupolis in Greece and the Bulgarian gas grid operator is a 20% shareholder in it.

Energocom and Bulgartransgaz also discussed potential cooperation in relation to the Alexandroupolis terminal and the planned expansion of Bulgaria's Chiren underground gas storage facility.

The contracts were signed in the attendance of Bulgarian president Rumen Radev and his Moldovan counterpart Maia Sandu.

"Bulgaria and Moldova are facing serious challenges not only to their security, but also to their economies and social systems due to disrupted supply chains, increased energy prices and rising inflation resulting from Russia's war against Ukraine. We can only successfully face these challenges if we stand in solidarity and work together," Radev said in a separate statement.

The two heads of state also discussed possible cooperation between Bulgaria and Moldova in light of the potential EU financial assistance relating to the supply of electricity. Bulgaria already exports power to North Macedonia, with the Commission having just approved an 80 million euro ($79.7 million) grant for North Macedonia to purchase additional electricity, which Bulgaria is ready to provide, according to Radev.

Earlier this week, Moldova's government said it will look at power saving measures and alternative supplier contracts as the country faces power shortages due to the war, further complicated by the risk of Russia's Gazprom fully halting gas deliveries.

($ = 1.00350 euro)