Moldovan and Romania Prime Ministers, along with the EU Energy Commissioner, have inaugurated the start of construction of the pipeline linking Ungheni (West of Moldova) and Iaşi (East of Romania).
The 42-km long interconnector, with 32 km of it being in the Romanian territory, will be the first direct gas pipeline connecting Moldova and the European Union (EU). The "Ungheni-Iaşi pipeline" will have a maximum transportation capacity of 1.5 bcm/y. Through the new pipeline, Moldova will be able to get gas directly from the EU and international markets. Until now, Moldova is 100% dependent on imported natural gas from Russia and has no domestic gas production. The EU financed a €7m grant, while the the Romanian Government committed to assist Moldova with €9m, out of a total construction costs amounting to €28m. The Ungheni-Iaşi pipeline is to be completed by end 2014.
To deliver gas to the Moldavian capital Chisinau, the country will build a new 130-km long pipeline that should require at least €60m in investments. Moldovan authorities said this pipeline could be achieved over some four to five years.