Transdniestria, a breakaway pro-Russian region of Ukraine’s neighbour Moldova, has agreed on a deal with a Hungarian company to buy natural gas under a loan provided by Russia. Transdniestrian leader Vadim Krasnoselsky revealed in Telegram that the delivery of gas “was made possible by Russian credit and functional support,” though he did not provide further details. Moldovan Prime Minister Dorin Recean says his country will not block gas flows to Transndniestria under a deal involving Hungary’s MET Gas and Energy Marketing AG.
Last month, the pro-Russian region was plunged into a crisis after Russian gas exports via pipelines running through Ukraine came to a halt on New Year’s Day, cut off heating and hot water supplies to households. Local energy company Tirasteploenergo urged residents to use electric heaters, dress warmly, and hang blankets or thick curtains over windows and balcony doors.
Transdniestria is, however, not out of the woods yet. According to Recean, the deal stipulates that MET Gas will supply 3 million cubic metres of gas per day starting from February 13 for only 16 days. He revealed that Transdniestria rejected an EU offer of 60 million euros to fund gas purchases on the grounds that it would have required consumers to gradually pay more for gas. “The inhabitants of the Transdniestria region will continue to live in a state of unpredictability and worry about gas supply,” Recean said. “It’s a solution that doesn’t solve the problem long term.“
Europe’s gas inventories have continued to moderate, with the latest w/w draw of 3.72 billion cubic metres (bcm) at 96% of the five-year average draw. According to gas Infrastructure Europe (GIE) data, inventories stood at 61.85 bcm on 2 February, and are 19.05 bcm lower y/y and 6.77 bcm below the five-year average. European natural gas futures climbed toward €58 per megawatt-hour on Monday, the highest level since January 2023, as colder weather accelerates the drawdown of regional storage.
By Alex Kimani for Oilprice.com