* Pipeline can provide up to one third of Moldova's needs
* Commission providing seven million euro grant
BRUSSELS Aug 26 Moldova will move closer to
cutting its complete reliance on natural gas from Russia on
Tuesday, with the inauguration of its first pipeline link to
European Union supplies.
To curb Russia's dominance of the European energy market,
the European Union has been working to diversify its own sources
of gas and also those of neighbouring states.
"This is a historic day - we are celebrating that Moldova
will be directly connected to the EU gas market. This will
enhance its energy security and reduce its dependence from the
only supplier it has now," EU Energy Commissioner Guenther
Oettinger said in a statement ahead of Tuesday's inauguration.
EU efforts to reduce Russia's control have soured ties
between the bloc and Moscow, while tensions simmer with the
former Soviet states.
A pricing dispute between gas transit nation Ukraine and
Moscow in early 2009 led to severe disruption of shipments to EU
Gas supplies to western Europe via Moldova were also briefly
interrupted in January 2006, again because of a pricing row, but
that was a minor disruption compared with impact of the Ukraine
Oettinger will inaugurate the pipeline linking Iasi, Romania
to Ungheni, Moldova, together with the two prime ministers in
Moldova on Tuesday - the day Moldova commemorates independence
from the former Soviet Union.
The European Commission is providing seven million euros
($9.38 million) out of the total pipeline cost of 28 million.
With a maximum transportation capacity of about a billion
cubic metres per year, the pipeline will be able to provide up
to one third of Moldova's gas consumption from the end of 2014,
the Commission said.
Moldova, which is sandwiched between Romania and Ukraine, is
not a member of the European Union, but is part of the EU Energy
Community, which seeks to extend the EU energy market to
neighbouring countries through legislation and physical pipeline
After years of wrangling with Moscow over how much it has to
pay for gas, Ukraine has begun replacing Russian gas with
cheaper fuel bought on the European spot market.
($1 = 0.7461 euros)
(Reporting by Barbara Lewis, editing by William Hardy)