How should we protect ourselves against future ‘gas wars’?, Expert Grup

The gas crisis has showed once again that Moldova is extremely exposed to energy risks. Unfortunately, little was done the previous years to insure a constant gas supply and manage possible crisis situations, experts of the Independent Analytical Center “Expert Grup” Alex Oprunenco and Valeriu Prohnitchi said. They propose a number of solutions that could help Moldova protect itself from similar crisis, Info-Prim Neo reports. According to the experts, Moldova must negotiate the future contracts with Gazprom so that they expire at the middle and not at the end of the year. “Normally, this would give Moldova a temporary respite and will make it less vulnerable to the situations when Gazprom could apply pressure in order to raise the prices or when Russia would like to use the gas as an instrument for political influence or pressure on Moldova,” the two experts think. The experts also stress the necessity of conserving energy: “Until present, the conservation of energy in Moldova was a purely rhetoric issue that neither the Government, nor the producers or the consumers treated seriously. It is estimated that the losses when transporting thermal energy make up 10-15%, while another 5-10% of heat are lost when the thermal energy gets to buildings. The ‘gas war’ should make the authorities change the methodology of using energy in Moldova”. The experts consider that Moldova must seriously think about diversifying the energy sources, banking more on electric power, including from renewable energy resources, so as to reduce dependence on the supplying countries and the transit of natural gas. “Isn’t the time opportune for Moldova to consider Romania’s offer to participate in the finalization of the construction of the atomic power station in Cernavoda?” Alex Oprunenco and Valeriu Prohnitchi asked. Moldova should make stores of crude oil, coal and other fuels in advance, the experts recommend. This is the easiest way out. Practically all the important energy facilities in Moldova can use these traditional and relatively cheap resources. The exploitation of the own gas resources would be another solution. The gas extracted at present (in Victorovca village of Cantemir district) covers only 0.1% of the domestic consumption. There are yet no clear projections. Some experts estimate that the gas reserves in Moldova are minimal, while others say there are huge reserves deep under the ground. “If the optimistic forecasts turn out to be true, we could reduce the energy dependence and would have a safe internal cushion in emergencies,” experts say. According to Oprunenco and Prohnitchi, Moldova could also create its own gas reservoirs as many other states do in such cases, including Ukraine. Yet, this solution is relatively expensive. These reservoirs are usually sufficient for at least 30 workdays. Romania for example had stores for 60-80 days without Russian gas imports at the start of January. This doesn’t compare with the supplies available in northern and central Moldova on January 7, 2009 - for 48 hours. The gas crisis proved that the energy security issue should be moved up to a top priority in the National Development Strategy and be also included in the public budget. Creating a connection with Romania’s gas system could be another solution. Romania has improved access to natural gas in the West and East and is only 31% dependent on Russian gas. This dependence can be reduced if the Nabucco project is implemented. The dependence on the Russian gas transported through Ukraine can be further diminished if Romania participates in the Russian project Southstream. Moldova could benefit from the connection to Romania’s gas system during peaceful times as well as in emergencies, the experts of “Expert Grup” consider.