OMV Petrom has signed an agreement with Energocom in the Republic of Moldova and will stat delivering natural gas to Moldova on January 1, through the Iasi-Ungheni pipeline, sources close to the talks told Mediafax.

“The contract was signed for a period of one year. Starting quantities are small”, the sources said.

Moldova’s minister of Economy, Andrian Candu, was quoted by Moldovan press saying that Energocom will pay USD 277/1,000 cubic meteres, 100 dollars under the USD 378 lelvel that the company is currently using to pay for gas from Gazprom. 

The republic of Moldova consumes 1.2 billion cubic meters of gas every year with its main source being Russia.

The Iasi-Ungheni pipeline was commissioned on August 27, 2014. Its length on the Romanian territory is 32 kilometers. Some 736 meters have been constructed under the river Prut, and another 11 kilometers are located on the territory of Moldova.

Its construction required investments of EUR 26, EUR 9 million of which have been granted by the European Union. The country’s authorities have stated that the first stream of “blue fuel” would arrive in September, but several factors have delayed the initiation of a link between the two countries. One of the most important obstacles was of course the interference of Gazprom.