Vadim Ceban, Acting Chairman of the Board of Moldovagaz
LP: – Vadim Petrovich, why did Moldovagaz lose its license to supply natural gas to consumers and could it have been avoided?
– Of course, it could have been avoided. But for this purpose many conditions had to come together. The National Energy Regulatory Agency (ANRE) could not extend the license of Moldovagaz because the key issue of compliance with the Moldovan legislation and the requirements of the EU Third Energy Package on anbandling – separation of the functions of supply and transportation (in terms of ownership of the gas transmission system) of natural gas – had not been resolved.
For a correct understanding of the situation, I would like to emphasize that we have carried out all internal procedures to prepare for this unbundling. Both technically and legally all the issues have been worked out. But the decision on anbandling depends on the shareholders. In this context, there is an official position of “Gazprom” (majority shareholder with a 50% stake – LP note), fixed when signing a protocol with the Moldovan government on October 29, 2021. It is that it is necessary to settle debts on gas supplies first, and only after that to solve the issues of anbandling and other requirements of the EU 3rd energy package.
As it is known, the problem of Moldova’s debts to Gazprom has not been settled yet, so there is no progress in separating the functions of gas supply and transportation.
LP: – And if the shareholders suddenly decide on anbandling, what will it mean in practice and how soon can it be realized?
– The issue is rooted in the management of natural gas transportation and supply assets. They are still owned by Moldovagaz. However, since 2023, the gas transportation assets have been leased to Vestmoldtransgaz (VMTG), a subsidiary of the Romanian state operator Transgaz. Just to fulfill the condition of separation of supply and transportation functions.
In fact, we are forced to sell these assets. I do not think that the shareholders will agree to this at this moment in time. In case of such a decision on the part of shareholders, it would be more appropriate to hold an international tender and choose the most favorable offer.
I would like to emphasize once again that all these issues should be resolved at the level of shareholders. But taking into account the fact that the sale of assets and reorganization of the company are directly related to the settlement of debts, it is still difficult to predict whether such a decision can be made and what it will be.
As for the terms of the debandling, if it is carried out on the basis of the shareholders’ resolution, it will prescribe both specific conditions and time frames for the realization of this procedure. And we will certainly comply with them.
LP: – As far as we know, a general meeting of Moldovagaz JSC shareholders is scheduled for May 30. What issues will be resolved at the meeting, and is it possible to discuss the problem of anbandling?
– The agenda includes the usual issues for the annual meeting – summarizing the results of last year’s work, election of the new composition of the Supervisory Board of the company and the Revision Commission. The new composition of the Supervisory Board will then determine and appoint the Management Board.
We do not have any information that the shareholders will substantially discuss the issue of anbandling. And it is unlikely that any specific decision will be made about it.
However, this does not exclude that there may be some discussions within the framework of the meeting or during individual meetings of Gazprom representatives with the Moldovan leadership.
LP: – Is there already a certain understanding of the composition of the new Moldovagaz Management Board? And what tasks will it face in the light of the loss of the company’s license for gas supply and distribution?
– There is a letter from the Public Property Agency proposing candidates for the company’s executive body. It includes Vadim Ceban, Radu Mandraburca and Eduard Calancia.
As for the tasks, they will not change for us, strangely enough. We will still provide natural gas supply services to the population. But their actual recipient will be the state-owned company Energocom, to which the functions of a public service provider will be transferred by law. Including to end consumers.
It should be understood that Energocom currently has neither a database, nor the ability to invoice gas supplies, nor to work with debtors. Not to mention the purely technical problems of maintaining gas distribution networks.
In this context, we will continue to work actively on the energy market of Moldova and provide quality services for the benefit of the citizens of our country. Our main asset is people, professional staff, who are capable of solving the most complex tasks of ensuring energy security in the gas sector.
Moldovagaz has 12 regional gas distribution companies, which work directly with end consumers of gas. This is our client base, and we cannot let them down. The company owns about 7 thousand kilometers of its own networks, several thousand more are on the balance sheet, but belong to local authorities and citizens. We will continue servicing them.
Besides, although we do not have a license for gas supply, nobody forbids us to make investments. Not only in the development of gas networks to provide services to Energocom and other suppliers, but also in alternative energy, “green” technologies. Once again, we employ highly qualified professionals, and we intend to make full use of their experience, knowledge and opportunities to increase the company’s potential.
LP: – Nevertheless, the absence of a license at Moldovagaz will probably affect the decrease of turnover and profit. Won’t it lead to the outflow of personnel?
– We will try to prevent this. Yes, our turnover is likely to decrease. But there are also reserves that we will use to intensify activities in other areas. I have already talked about the possibilities of investing in alternative energy, which is very relevant today.
We also have a subsidiary company TransAutoGaz, which has experience and skills in the field of natural gas procurement and wholesale supplies. We will be active in the market and offer competitive conditions for traders and buyers. In this regard, I would like to emphasize that it was “Moldovagaz” that became the driver of the launch and involvement in the energy market of exchange transactions on the platform of the Romanian commodity exchange BRM in Moldova.
By the way, gas was also purchased on this exchange for Transnistria at the suggestion of the Moldovan Ministry of Energy during the crisis at the beginning of this year. And it is quite likely that we will be left with the issue of gas supplies to the unrecognized region, because only we have a contract and the ability to make mutual settlements with Tiraspoltransgaz.
So we are sure that we will have a lot of work to do, we will still be active players on the energy market of Moldova. Although after the general meeting of shareholders, the goals and objectives facing us will be outlined more clearly.
