Moldova’s natural gas consumption decreased by 39% in the 12 months to September 2023, compared to 53% in the same period in 2021. The country’s gas bill exceeded $1bn for the most recent 12 months, five times more than before the renegotiation of its Gazprom contract with Gazprom. The average price paid in the most recent 12-month period exceeded $1,000 per 1,000 cubic meters, nearly four times more than the $268 before September 2021.
Moldova switched to the free market after several quarters of the new contract with Gazprom, but the average natural gas price dropped to $568 per 1,000 cubic meters in Q3 2023, still nearly twice the $310 price paid in Q3 2021. The government assured that it has contracts at reasonable prices for the coming winter season.
Despite moderated import prices, Moldova’s consumption may remain low due to high prices and scarce gas resources for the non-residential sector. This will force structural reforms and encourage energy efficiency investments. The shift from preferential to market prices has resulted in better allocation of energy towards value-added segments of the economy.
For decades, Moldova’s energy landscape has been shaped by dependence on Russian gas. However, Russia’s full-scale invasion of Ukraine changed it completely. The recent developments signal a transformative shift as Moldova diversifies its energy sources by receiving gas from EU nations and now completely shuts out Russian gas. This move not only enhances energy security but also aligns Moldova with European energy standards, fostering economic resilience and reducing vulnerability to external pressures. The shift strengthens Moldova’s autonomy and contributes to regional energy stability.
More important than any other country is Romania, which has served as the leader of the transformation of Moldova’s gas market. Some experts even believe that Romania is building the foundation for creating an environment in which Moldova and Romania can unify into one state, similarly to how things were before the Soviet annexation of Bessarabia in the initial phase of the Second World War.
