Moldova has signed its first contracts to purchase natural gas from Ukrainian private producers after limited exports from Ukraine resumed. State-owned company Energocom bought 2 million cubic meters of fuel at a price below European exchange quotes. Moldovan authorities expect to increase purchases and eventually reduce tariffs for households.

This was reported on October 29 by Moldovan Prime Minister Vasile Tofan, according to Moldova 1.

According to the head of government, Energocom gained access to the Ukrainian gas exchange and has already completed its first deals. The purchase price was about 10 euros per MWh lower than current quotes on the European TTF gas hub.

The prime minister explained that the initial batch was relatively small, as the main goal was to test the new procurement mechanism.

The Moldovan company bought Ukrainian gas at a more favorable price and simultaneously sold a comparable volume of previously contracted fuel. Due to the price difference, Energocom, according to Tofan, earned additional revenue.

However, the prime minister did not specify the exact purchase price, the amount of earnings, or the final savings considering all transportation costs.

The next step should be negotiations on increasing supply volumes. Chișinău is interested in replacing part of the more expensive contracts with Ukrainian gas.

According to Tofan, Moldova has already contracted about 90% of the required gas volumes for the upcoming winter. However, the ability to purchase additional batches at lower prices allows reviewing the structure of purchases and reducing the average fuel cost.

The authorities expect that such savings may in the future create conditions for lowering tariffs for end consumers. No tariff revision decisions have been made yet.

Ukraine resumes limited gas exports

The purchases became possible after the Ukrainian government partially lifted the ban on natural gas exports that had been in place since the start of the full-scale Russian invasion in 2022.

On October 7, the Cabinet of Ministers adopted Resolution No. 1251, allowing controlled foreign sales of Ukrainian-produced gas.

Under the new rules, private gas producers may export up to 15% of their set monthly production volume. The permit is effective annually from March 1 to November 30. From December 1 to the end of February, exports under this mechanism are not carried out.

Sales volumes are determined based on actual production, and deals are conducted through special exchange trading. In the event of a gas shortage threat or crisis situation, the government provides for the possibility of prompt export restrictions.

As previously reported by S&P Global, the Ukrainian Ministry of Energy explained the partial opening of exports by sufficient gas reserves and the need to support domestic producers.

At the time of the decision, Ukrainian underground storage facilities held almost 15.8 billion cubic meters of gas—about 1.2 billion cubic meters more than the target for preparing for the heating season.

Moreover, due to reduced industrial consumption, there is an excess of gas produced by private companies in the domestic market. The ability to sell part of the resource abroad allows producers to receive additional revenue to maintain production, repair equipment, and protect facilities from Russian attacks.

Moldova hopes to reduce gas costs

For Moldova, Ukrainian gas becomes an additional source of supply amid high prices on the European energy market.

According to Moldova 1, since October 1, household consumers in Moldova pay 26.14 Moldovan lei per cubic meter for natural gas, including VAT. The fuel price increase is linked to the international energy crisis and rising purchase prices.

Chișinău is also in talks with Azerbaijan, Qatar, and Turkmenistan, seeking to diversify supplies and conclude more advantageous medium- and long-term contracts.

Earlier, Moldovan authorities estimated that volumes potentially available for export from Ukraine are about 500 million cubic meters. However, actual supplies will depend on producers' offers, market prices, and restrictions set by the Ukrainian government.

The contract for the first 2 million cubic meters confirms the possibility of commercial purchases of Ukrainian gas, but does not mean that this entire volume has already been physically delivered to Moldova. Exact delivery schedules are not disclosed.