The New Lifeline Pipeline: Moldova’s Chance for Secure Gas Imports

The Trans-Balkan Pipeline system serves as a key solution for the Republic of Moldova’s gas imports, according to a study by the International Energy Community.

The Trans-Balkan Pipeline (TBP) emerged during the former Soviet Union and reached completion in 1988. Initially, it transported Russian gas through Ukraine to supply Moldova, Romania, Bulgaria, and Turkey. Over time, the importance of the TBP declined due to the diversification of supply routes for Turkey and the increase in domestic gas production in Romania.

At the beginning of 2020, the TurkStream pipeline became operational, supplying gas directly to Turkey and creating a new supply route for Central Europe through Bulgaria and Serbia into Hungary. Currently, the TBP mainly serves to meet Moldova’s gas consumption (approximately 2-3 billion cubic meters annually) and supplies gas to some end consumers in Ukraine, particularly in the Causeni-Orlivka region.

Although the system functioned for one-way flow, it can now operate bi-directionally. It could enable the transport of up to 25 billion cubic meters annually in the reverse direction.
In recent months, the involved parties (regulators and transport system operators) have held several meetings to enhance the TBP’s attractiveness to potential users. Also, they agreed on identical resolutions regarding tariffs and product quantities. However, further cooperation and alignment will be necessary in some areas.

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Moldova’s gas law allows transport system operators (TSOs) to offer “conditional firm capacity,” while the Ukrainian Gas Transport System Code provides “capacity with restrictions.” The latter effectively represents interruptible capacity at the highest level. The proposed amendment to Moldova’s gas network code has created some uncertainties, as the product was not entirely “firm conditioned,” according to Moldovan legal requirements.

The main technical constraints, such as the need for a constant flow and regional consumption, specifically affect Ukraine’s transport network. Nonetheless, ANRE raised transport tariffs for Moldova in October 2023, increasing costs for Ukrainian customers at the border.

The Trans-Balkan infrastructure provides Moldova access to the global liquefied natural gas (LNG) market through terminals in Greece and Turkey to EU gas markets and Azerbaijani gas through the Southern Corridor. It represents an opportunity to ensure a stable energy source in the current context.

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