Oil & Gas Laws and Regulations in Moldova (2024)

1. Summary 

In the last couple of years, Moldova went through fundamental changes in the energy sector, at almost all levels. For instance, in the last year, Moldova’s supplies were diversified from Russia and imported from the EU and Ukraine. Energocom, a state-owned trader, sold gas covering almost the complete country demand to Moldovagaz, using an EBRD loan of EUR 300 million for gas supply and storage operations. On the other side, the decisions adopted by the Commission for Emergency Situations (CES) concerning the ban on issuing licenses for natural gas supply and trading were highly criticized by the business community.

The retail market is still highly regulated. Moldovagaz, which is the main supplier under public service obligation (PSO) for the supply of gas to all final consumers, must exercise this obligation until at least the end of 2026.

In terms of unbundling, ANRE provisionally designated Vestmoldtransgaz as an independent system operator (ISO) responsible for national gas transmission operation with effect from September 19, 2023.

Against this background, and in response to the 2021-2022 energy crisis, Moldova has taken significant steps towards diversification of the supplies and toward opening the market.

2. Overview of The Country’s Oil & Gas Sector 

2.1. Legal Framework – A Brief Outline of Your Jurisdiction’s Oil & Gas Sector

The Moldovan law on oil & gas is in the process of transposition of the European Union legislation, in light of Moldova’s obligations under the Moldova-EU Association Agreement; Moldova’s obligations as a member of the Energy Community as well as Moldova’s status of candidacy to membership of European Union.

The main principle applicable to the energy sector is free market accession which means that any player can enter on Moldova energy market, provided it complies with regulatory requirements. Besides that, the principle of separation of activities (supply, distribution, transportation, and trading) as well as the principle of cost efficiency in tariff approvals are also applicable.

Regarding recent trends, the Amendments to the Law on Energy, which transposes Regulation (EU) 347/2013 and partially Regulation (EU) 2022/869, were adopted in 2023. Moldova has increased its security of natural gas supply with the operationalization of the Ungheni - Chisinau pipeline, commissioned in October 2021. An interconnection agreement between Moldovatransgaz and the gas transmission system operator of Ukraine was concluded in line with the acquis. Vestmoldtransgaz was replaced in the interconnection agreement on September 18, 2023. This enables backhaul on the corridor. Along with the virtual trading point, this contributes to the development of the market in Moldova. Moldova and Ukraine are in a dialogue on how to promote regional security of gas supply.

2.2. Domestic Oil & Gas Production and Imports/Exports 

Although, in Moldova, there are no producers of natural gas and the gas is not exported, the law regulates the production activity. Thus, according to Art. 19 of Law no.108/2016 on natural gas, the construction and operation of the production facilities is carried out only on the condition that the government assigns the right to use the underground sectors for the extraction of natural gas. Afterward, the beneficiary is obliged to obtain construction authorization from the local public administration authorities in accordance with the Law on the authorization of the execution of construction works.

In order to carry out the activity of natural gas production, the producer is obliged to obtain a natural gas production license issued by the ANRE. The producer participates in the natural gas market under the conditions established in the Natural Gas Market Rules and is obliged to comply with the provisions of the Connection Regulation, the Code of Natural Gas Networks, and other normative regulatory acts approved by the ANRE, including complying with the technical requirements of connection to natural gas networks and quality parameters of natural gas delivered to natural gas networks. The producer has the right to sell natural gas on the wholesale market of natural gas based on the license for the production of natural gas, and on the retail market of natural gas – on the condition of obtaining the license for the supply of natural gas. The producer must be independent, from a legal point of view, of any enterprise that carries out the activity of transportation, distribution, or storage of natural gas. They cannot hold the license for the transport, distribution, or storage of natural gas.

According to Art. 20 of Law no.108/2016 on natural gas, the natural gas producer is obliged:

• to carry out its activity in accordance with this law, in compliance with the conditions of the license, the Code of Natural Gas Networks, and the Natural Gas Market Rules;
• to install and use measuring equipment that allows the measurement of natural gas delivered in natural gas networks;
• to operate and maintain the production facilities in such a way as to ensure their safe and continuous operation;
• comply with environmental protection requirements and promote energy efficiency;
• to comply with the Natural Gas Market Rules and not distort competition in the natural gas market;
• to equip, operate, maintain, and modernize the production facilities, increase their capacity, as well as related facilities used for the delivery of natural gas in the natural gas networks, under the conditions established in this chapter and in the normative documents approved by government;
• to provide the operator of the transmission system or the operator of the distribution system with the necessary data for the operation of the natural gas networks and for the management of the natural gas system;
• to grant access to the personnel of the operator of the transport system and the personnel of the operator of the distribution system to the equipment and to its production facilities, which are used for the measurement and delivery of natural gas in the natural gas networks;
• to ensure access to upstream natural gas networks;
• to submit reports to the ANRE regarding the activity carried out, as well as any other information requested in accordance with this law and according to the conditions of the license.

Although Gazprom remains the main supplier of natural gas in Moldova, in recent years, the State-owned entity Energocom has contracted a number of international gas traders, diversifying the portfolio of the gas suppliers to Moldova.

Regarding petroleum products, the petroleum business activity is governed by Law 461/2001 on the petroleum products market. The law does not contain provisions on the production of petroleum products. It governs only the import and sale of petrol, diesel, and liquefied gas.

In 2023, Moldova imported over 907.9 thousand tons of petroleum products in 2023 – 46.5 thousand tons (5.46%) more than the previous year. Gasoline purchases increased from 169.5 thousand tons to 184.2 thousand tons (+8.69%), diesel fuel – from 636.4 to 665.6 thousand tons (+4.58%), and liquefied gas – from 55.4 to 58 thousand tons (+4.71%). The main supplier remains Romania, which holds 96.8% of gasoline deliveries, 68% of diesel, and 54.2% of liquefied gas, although its share decreased by 3.2 percentage points, 16.4 percentage points, and 10.4 percentage points, respectively, in the last year. Moldova also imported petroleum products from Kazakhstan, Russia, Bulgaria, Italy, Israel, United Arab Emirates, India, Nigeria, France, USA, Algeria, Latvia, Greece and Croatia.

2.3. Foreign Investment and Participation 

Generally, all foreign investments benefit from the same legal rights and obligations as national investors. Thus, according to Art. 6 of Law no.81/2004 on investments in entrepreneurial activities in the Republic of Moldova, investments cannot be subject to discrimination based on citizenship, domicile, residence, place of registration or activity, state of origin of the investor or the investment or for any other reason. Investors are granted fair and equal conditions of activity, which exclude the application of discriminatory measures that could prevent the management, operation, maintenance, use, fruition, acquisition, expansion, or disposal of investments. Any facility granted, in accordance with the legislation in force, including within the public-private partnership, to investors to contribute to the realization of the regional, structural, environmental, research, and development policy promoted by the state or any facility granted to an investor for the promotion of its investments, which do not contravene the provisions of the international agreements to which the Republic of Moldova is a party, are respected and do not constitute an object of discrimination.

2.4. Protection Of Investment 

The Republic of Moldova accessed the Energy Community by ratifying the Treaty establishing the Energy Community on May 1, 2010. Therefore, the regulatory policy and strategy in the energy sector, including in the oil and gas industry aims to align the local normative framework with the European Acquis Communautaire. One of the examples is adoption of Law 108/2016 on natural gas which aims to transpose Moldova’s commitments to implement the Energy Package III.

In addition, on February 12, 1992, Moldova signed the 1991 European Energy Charter (not in force). On December 17, 1994, Moldova signed the 1994 Energy Charter Treaty (in force since April 16, 1998). And on May 20, 2015, Moldova signed the 2015 International Energy Charter (not in force). 

3. Exploration of Oil & Gas 

3.1. Granting of Oil & Gas Exploration Rights 

According to Art. 6 of the Code of Subsoil, the assets of any nature of the subsoil of the Republic of Moldova, including the useful mineral substances it contains, as well as its underground spaces are the exclusive object of the public property of the state, are inalienable, inalienable and imprescriptible. Underground sectors cannot be alienated, they can only be given for use. All legal acts or actions that, directly or indirectly, violate the state's public ownership of the subsoil are struck by absolute nullity. The extracted mineral raw material belongs to the beneficiary of the underground with ownership rights, if the contract between the State and that party does not provide otherwise.

According to Art. 13 of the Code of Subsoil, the right of use over the underground sector is realized within the limits of the sector assigned to the beneficiary of the underground in the form of a mining or geological perimeter, according to the clauses provided by the contract. The right to extract useful mineral substances, including underground water and natural healing resources, gives the beneficiary of the underground the opportunity to carry out activities for a set period.

According to Art. 14 of the same code, the underground is allocated for use for:

1. geological research, including prospecting, evaluation, and exploration of deposits of useful mineral substances and other types of geological research;
2. extraction of useful mineral substances, including groundwater and natural healing resources;
3. construction and operation of underground constructions unrelated to the extraction of useful mineral substances;
4. burial (storage) of harmful substances and industrial waste;
5. organization of protected geological objectives;
6. collection of mineralogical, paleontological, and other geological collection materials.

According to Art. 15 of the Code of Subsoil, underground sectors are allocated for use for a limited (temporary use) or unlimited term. For an unlimited period, the underground sectors are attributed to the authorities of the central public administration, public institutions subordinated to them for the exploitation of underground constructions unrelated to the extraction of useful mineral substances, the burial (deposit) of harmful substances and industrial waste, the organization of protected geological objectives. 

According to Art. 15(3) of the Code of Subsoil, in temporary use, basement sectors are allocated for:

1. geological research of the subsoil, construction of underground constructions unrelated to the extraction of useful mineral substances – for a term of up to five years;
2. extraction of useful mineral substances – during the exploitation of the deposit, according to the approved technical (technological) project documentation;
3. underground water extraction – for a period of up to 25 years. 

According to Art. 16 of the Code of Subsoil, the grounds for the right of use over the underground sectors are: 

1. Government decision, adopted:
2. as a result of the competition for the right to explore or extract useful mineral substances of national importance on a concession basis, according to the law on concessions;
3. for the purpose of burying (depositing) harmful substances and industrial waste in the deep layers;
4. in order to organize geological objectives of national importance, protected by the state;
5. the decision of the Ministry of the Environment regarding the transmission of underground sectors in use for the purpose of geological research, the extraction of useful mineral substances, the construction and/or exploitation of underground constructions unrelated to the extraction of useful mineral substances, as well as for other purposes;
6. transmission or transfer of the right of use over the basement sectors according to the provisions of the civil legislation regarding legal succession in case of reorganization of the legal entity;
7. establishment and confirmation of the fact of the discovery of the deposit of useful mineral substances by the beneficiary of the basement as a result of the works carried out on a competitive basis from the account of own financial means.

3.2. Foreign Exploration

3.1 is applicable equally.

3.3. Stages of the Exploration Process 

For the conclusion of a concession agreement the investor should meet the following requirements, in accordance with p.1 of Annex 1 to Governmental Decision cno.895/2016 regarding the concession of geological exploration works for hydrocarbons on the territory of the Republic of Moldova, with their subsequent exploitation:

• international experience in the execution of prospecting and evaluation works of natural gas and oil deposits – minimum 20 years;
• at least 15 years of technical experience and experience related to the exploration and development of hydrocarbons, including experience in carrying out 2D and 3D seismic operations, drilling and intervention on natural gas and oil wells, interpretation and processing of data related to exploration, production, transportation and commercialization of hydrocarbons produced on international markets;
• to have made investments of at least USD 50 million in natural gas and oil exploration and production projects in any country of the world, which would have included the implementation of drilling and intervention programs, exploration, production, transportation, and marketing of hydrocarbons produced on international markets;
• has specialized and sufficient managerial capacity for the development and implementation of the project, the hiring and training of the personnel involved in the implementation of the project;
• has advanced technologies, equipment, and techniques, specialized and sufficient human resources for the development and implementation of hydrocarbon exploration projects;
• has adequate and efficient systems for continuous monitoring of the risks related to the project;
• has management systems that will ensure the implementation of all necessary and possible measures in order to prevent the negative impact on the environment, the health of the community, and the waste of natural resources;
• to implement technical and organizational measures aimed at preventing the pollution of soil and surface and underground waters and the air basin with liquid and gaseous petroleum products.

As a concessionaire, any legal entities from the Republic of Moldova and foreign legal entities, that have been designated by the competition commission, can participate.   Contest participants can act directly or through representatives, mandated according to the legislation of the Republic of Moldova.

Following the conclusion of the concession agreement, the investing party must obtain the following permits:

• gas emissions authorization (issued by the Environmental ANRE; validity term: one to five years;
• construction authorizations for works of public utility of national interest (issued by the Ministry of Economy and Infrastructure of the Republic of Moldova; validity term: for the period of construction works; free of charge);
• sanitary authorization for the functioning of the facility (issued by the National Public Health ANRE; validity term: five years; free of charge).
• license for natural gas production issued by the ANRE issued for 25 years
• act on confirmation of geological limits (issued by ANRE for Geology and Natural Resources; validity term: five years; free of charge);
• state ecology expertise (issued by the Environmental ANRE; validity term: the period of project implementation; free of charge);
• environment permit, under certain conditions (resulting from the environmental impact assessment, issued by the Environmental ANRE; validity term: four years; free of charge);
• certificate on the protection of works of public utility and national interests (issued by the Ministry of Economy and Infrastructure of the Republic of Moldova; validity term: the period of construction works withholding; state fee:  based on the activity and equipment complexity); and
• positive confirmation of expertise in the domain of industrial security (issued by an authorized expertise entity; validity term: five years; state fee: depends on the complexity of the activity, the equipment, etc.)

After the conclusion of the concession agreement, in accordance with p.8 of Annex 1 to Governmental Decision cno.895/2016 regarding the concession of geological exploration works for hydrocarbons on the territory of the Republic of Moldova, with their subsequent exploitation, the concessionaire, within up to 60 days after signing the contract, will found in the Republic of Moldova a commercial company, in one of the forms of organization regulated by the legislation of the Republic of Moldova, for the purpose of operating as a concessionary enterprise, with headquarters in the municipality Chisinau, which will take over the execution of the works that constitute the object of the concession.

The concessionaire is obliged to pay, throughout the duration of the concession contract, the fees, taxes, and all mandatory state and local payments. If the concessionaire does not pay the mandatory payments within the term established by the legislation, the concessionaire bears subsidiary liability. The social insurance of the concessionaire's employees is regulated by the legislation of the Republic of Moldova. The number of employees, citizens of the Republic of Moldova, must not be less than 60% of the total number of employees of the concession enterprise.

3.4. Obligatory State Participation 

N/A

3.5. Risks To Be Considered

The potential investors should take into consideration the following anti-competitive requirements and requirements for fulfillment of the concession agreement, in order to avoid risks throughout the contractual performance. According to Art. 17 of the Code of Subsoil, the activities of the companies are considered illegal in case those activities are:

1. limiting, contrary to the conditions of the contest, the access to participate in the contest of legal and natural persons who intend to obtain the right to use the basement in accordance with this code;
2. evading the granting of the right of use over the basement sectors to the winners of the competition;
3. discrimination of the beneficiaries of the basement when granting access to transport and infrastructure objectives.

The Ministry of the Environment develops, and the Government approves, regulations regarding the limited quantity of reserves of useful mineral substances assigned to a company

In accordance with p.7 of Annex 1 to Governmental Decision cno.895/2016 regarding the concession of geological exploration works for hydrocarbons on the territory of the Republic of Moldova, with their subsequent exploitation, the concessionaire is not entitled to alienate, encumber, with any kind of rights or duties, or otherwise dispose of the object of the concession.

The concessionaire is obliged to register all assets resulting from the implementation of the concession project in the public registers as property of the state, for the duration of the concession contract. The concessionaire is obliged to bear all the expenses caused by the granting of the concession. The concessionaire is obliged to bear all the expenses deriving from the granting of the concession.

The concessionaire is obliged to ensure the ecological security of the established production unit and the protection of the environment during the concession period. The concessionaire, obligatorily and free of charge, must submit to the State Fund of information on the subsoil within the ANRE for Geology and Mineral Resources all the truthful geological information, with the respective annexes (maps, schemes, profiles, etc.) and the results of laboratory tests obtained in the process of hydrocarbon research works.

During the period of the concession contract, the concessionaire provides the concessionaire with the necessary support for obtaining licenses, all types of approvals and authorizations, issued by the central and/or local public authorities, as well as by other entities, under the conditions regulated by the legislation in force of the Republic of Moldova, and access to land owned by the state, necessary for the execution of concession works under the terms of the legislation and the concession contract. The concession of geological research works, including prospecting and evaluation of deposits of useful mineral substances of national importance, in order to detect accumulations of hydrocarbons (natural gas and oil), with their subsequent exploitation, is carried out within the limits of the provisions of the legislation of the Republic of Moldova.

In accordance with p.11 of Annex 1 to Governmental Decision cno.895/2016 regarding the concession of geological exploration works for hydrocarbons on the territory of the Republic of Moldova, with their subsequent exploitation, the concessionaire, annually, by April 30 of the period following the management year, presents to the grantor the financial statements for the management year and the auditor's report of the international audit company regarding the veracity of the financial statements of the concessionaire enterprises, including the report on the investments made. The audit company will be contracted directly only by the grantor, and payment for the services will be made from the sources of a fiduciary account that will be fully supplemented from the concessionaire's account for the payment of the audit company's services. The State authorities empowered with control function have the right to exercise control regarding the execution of the conditions of the concession contract by the concessionaire.

4. Production of Oil & Gas 

4.1. Granting Of Oil & Gas Production Rights 

N/A

4.2. Foreign Production 

N/A

4.3. Stages of the Production Process 

N/A

4.4. Obligatory State Participation 

N/A

4.5. Risks To Be Considered

Please see 3.5. above.

5. Termination of Production of Oil & Gas 

5.1. Abandonment and Decommissioning 

In accordance with p.9 of Annex 1 to the Governmental Decision cno.895/2016 regarding the concession of geological exploration works for hydrocarbons on the territory of the Republic of Moldova, with their subsequent exploitation, upon expiry of the concession contract, the concessionaire is obliged to:

• to return to the grantor, by deed, all the goods that were transmitted to the concessionaire under the concession contract;
• to transmit to the grantor all the geological and technical, design, and other documentation related to the object of the concession, the production and personnel registers, as well as other documents related to the object of the concession, according to international standards. 

The concession contract is terminated before the deadline if the concessionaire does not comply with the obligations assumed by the contract and/or the concessionaire presents documents and information that are not true. The finding of non-compliance with the obligations is made at the grantor's request by the national courts. In this case, the concessionaire is obliged to compensate the concessionaire for any damages thus caused and to pay the penalties in the amount established by the concession contract, except and to the extent that the concessionaire does not show that the damage caused is not due to his fault.

In the event of the termination of the concession contract, the concessionaire transfers to the property of the grantor all the assets that were the object of the concession and those that appeared as a result of the investments made by him, as well as those that cannot be separated from the object of the concession, without causing him damage or diminishing from the utility and capacity of use of the object of the concession, according to its destination.

The concessionaire may unilaterally terminate the concession in the event of the disappearance of the object of the concession or the impossibility of exploiting it for reasons beyond his control. In such cases, the state is not obliged to pay compensation to the concessionaire, except in the case and to the extent that they are owed to the government. In this situation, the validity of the reasons invoked by the concessionaire will be verified by a commission established by the government of representatives of the public authorities concerned. Based on the commission's conclusions, it will be agreed on the continuation or termination of the contract.

5.2. Environmental and HSE Consideration 

N/A

6. Safety of Oil & Gas Exploration and Production 

The 1994 Energy Charter Treaty, in force for Moldova since April 16, 1998

The Treaty Establishing the Energy Community, in force for Moldova since May 1, 2010. 

6.2. Offshore Safety Directive 

N/A

7. Import, Export, and Sales of Oil & Gas 

7.1. Import and Export of Oil & Gas

Regarding natural gas, all import and export transactions are performed only on the wholesale market. Thus, according to Art. 94 of Law 108/2016, natural gas sales-purchase transactions, including import or export transactions, sales-purchase transactions of related products, in which producers, transmission system operators, distribution system operators, storage facility operators, traders, and suppliers participate are carried out on the wholesale natural gas market. The wholesale market of natural gas is organized and operates in accordance with this chapter, with the Natural Gas Market Rules, and with other normative regulatory acts approved by the agency.

On the wholesale natural gas market, sales-purchase transactions are carried out based on bilateral contracts, which are formed taking into account demand and supply, as a result of competitive mechanisms or negotiations. Participants in the natural gas market have the right to engage in bilateral transactions, including bilateral transactions of export or import of natural gas, in compliance with the obligations established in this law and in the Rules of the natural gas market.

According to Art. 39(6¹) of Law 108/2016, the transmission system operator collaborates with transmission system operators in neighboring countries to ensure the interoperability of natural gas transmission networks. The cross-border volumes of natural gas highlighted in the operational balancing account are not subject to customs formalities, being exempt from the payment of import or export duties.

The import of the oil product is performed by the entities licensed by ANRE in this respect. One exception to this requirement is the import of diesel products by agricultural producers on the basis of the diesel import authorization as fuel for machinery, transport, or agricultural machinery, used directly in agricultural activity.

7.2. Transportation 

The pipelines for the transport of natural gas and petroleum products are regulated by Law no. 592/1995, on transportation through main pipelines. Transportation system operators must be certified as transmission system operators by the Energy Regulatory ANRE and obtain a natural gas transmission license. The license for the transportation of natural gas indicates the boundaries of the territory where the activity takes place. Certification requires companies to meet, in particular, the requirements for the unbundling and independence of the transportation system operator.

In addition, Art. 22 of Law 108/2016 regulates the status of the transportation operator in the gas sector. Thus, the transport of natural gas is carried out by the operator of the transport system based on the license for the transport of natural gas, issued by the agency in accordance with the law. When performing its functions and obligations, the transmission system operator is independent from any enterprise that carries out the activity of production, distribution, storage, trading, or supply of natural gas, as well as from any enterprise that controls the enterprises that carry out these activities, and cannot hold a license for the production of natural gas, a license for the distribution of natural gas, a license for the storage of natural gas, a license for the trading of natural gas or a license for the supply of natural gas,

In recent years Moldova has made progress with respect to the unbundling process. In September 2023, the ANRE approved a lease agreement between Moldovatransgaz, the previous transmission system operator, and Vestmoldtransgaz. Based on the lease agreement concluded for five years, Vestmoldtransgaz will operate the transmission networks owned by Moldovatransgaz and Moldovagaz. The certification process under the ISO model started on October 18, 2023, coinciding with the withdrawal of the transmission operation license of Moldovatransgaz. Vestmoldtransgaz started the operation of the entire Moldovan gas transmission system on September 19, 2023. Vestmoldtransgaz is owned by the Romanian transmission system operator Transgaz and the European Bank for Reconstruction and Development (EBRD), and certified under the ownership unbundling model. Moldovatransgaz on the other hand is owned by Moldovagaz.

7.3. Land Rights 

According to Art. 5 of Law no. 592/ 1995, regarding the transport through main pipelines, pipeline transport enterprises, and organizations are assigned land with the right of use in their activity according to the legislation. These lands are state property. The lands assigned to them by the local public administration bodies for the construction, operation, maintenance, repair, reconstruction, improvement, and development of pipeline transport objects are considered lands of pipeline transport enterprises and organizations.

For the construction of objects of transport through pipelines, land qualified on the basis of the land cadastre as unsuitable for agriculture, or land with low creditworthiness and not forested, is allocated. In exceptional cases, by decision of the government, agricultural lands of higher quality can be allocated for the purposes shown.

The area of land allocated for the construction of objects of pipeline transport is established in accordance with the norms in force and the technical design documentation approved in the established manner, and the assignment of land is carried out taking into account the sequence of their exploitation by the builders.

The assignment of possession, use, and disposal of new lands to enterprises and pipeline transport organizations is carried out only on the condition that their alienation is legalized for the indicated purposes and that the land previously exploited for these purposes is reintegrated into the agricultural rotation.

Art.74 of Law 108/2016 on natural gas contains similar provisions. It states that the lands that are publicly owned by the state or administrative-territorial units, necessary for the construction, operation, maintenance, rehabilitation, or modernization of the natural gas transport and distribution networks, are handed over to the system operators free of charge. The right of free use of the land during the exploitation of the natural gas networks, is established without the need to obtain the consent of the state or administrative-territorial units, the conclusion of any legal acts, or the fulfillment of other formalities. The right of use established pursuant to this article is exercised and is enforceable against third parties without the need to register it in the Real Estate Register.

The respective operators have the following rights:

1. the right of use over the land for the execution of works necessary for the construction, rehabilitation, or modernization of natural gas networks;
2. the right of use over the land to ensure the normal functioning of the natural gas networks by carrying out revisions, repairs, and other interventions necessary for the exploitation and maintenance of the natural gas networks;
3. the easement of underground, surface, or aerial passage of the land for the construction of natural gas networks and/or for the execution of works at the location of natural gas networks on the occasion of the intervention for the purpose of rehabilitation and modernization or for carrying out repair works, revision or other operation and maintenance works, to remove the consequences of damage, as well as for access to their network location;
4. the right to request the restriction or cessation of activities that would endanger the life and health of persons, assets, or certain activities;
5. the right of access to the land where the natural gas networks are located.

7.4. Access and Integration 

In 2023, ANRE adopted a transmission tariff methodology and the relevant tariffs in line with the Tariff Network Code, opting for interim balancing measures in line with the Balancing Network Code.

In terms of the gas law, Art. 55 of Law 108/2016 on natural gas provides that the system operator is obliged to grant access to the natural gas transmission and distribution networks to all existing or potential system users in a transparent, objective, and non-discriminatory manner.

Access to the natural gas transmission and distribution networks is granted based on the tariffs established in accordance with the methodologies for calculating the regulated tariffs for the natural gas transport service and for the natural gas distribution service, approved by the agency, published in the Official Gazette of the Republic of Moldova and applied to all system users in an objective and non-discriminatory manner.

The provisions of this law do not prevent the conclusion of interruptible, short-term contracts and long-term natural gas supply contracts, provided that they correspond to the principles and rules established in the normative acts that regulate competition.

In order to fulfill its functions, including those related to the cross-border transport of natural gas, the operator of the transmission system must cooperate with the operators of the transmission systems in neighboring countries in accordance with the agreements concluded with them.

In order to manage access to the natural gas transmission and distribution networks, the system operator is obliged to keep an electronic register in which to indicate, for each access point, identified by a specific number, all the data necessary to manage the access to network, including data on the identity of the final consumer, on the existing supplier, the address of the place of consumption, the contracted flow rate, the connection point, the delimitation point, the pressure at the delimitation point, the characteristics of the measuring equipment, as well as the mention of whether the respective place of consumption is connected or disconnected.

The data in the electronic register can be accessed by the respective final consumers or natural gas suppliers based on the written acceptance of the final consumer or based on the natural gas supply contract concluded between the final consumer and the natural gas supplier requesting access to the information from the electronic register.

7.5. Gas Transmission and Distribution 

Companies operate natural gas distribution networks as operators of the distribution system under the natural gas distribution license issued by the ANRE. The license is issued for 25 years and costs MDL 3,250.

According to Art. 43 of Law 108/2016 on natural gas, the operator of the distribution system is organized as a natural gas company, specialized and independent, with the status of a legal person. In fulfilling its functions and obligations, the distribution system operator is independent of any enterprise that carries out the activity of production, transport, storage, trading, or supply of natural gas and cannot hold a license for the production of natural gas, a license for the transport natural gas, natural gas storage license, natural gas trading license or natural gas supply license, with the exceptions provided by the law.

According to Art. 44 of Law 108/2016 on natural gas, the operator of the distribution system that is part of an integrated natural gas enterprise must be independent, at least from a functional, decision-making point of view and of the legal form of organization, from other activities that are not related to the activity of distribution of natural gas. In order to ensure the independence of the distribution system operator, the following minimum conditions must be fulfilled:

1. the persons with management functions of the distribution system operator should not be part of the structures of the vertically integrated natural gas company that is responsible, directly or indirectly, for the daily performance of the activity of production, transport, trading, or supply of natural gas;
2. to take the appropriate measures to ensure that the professional interests of the persons with management positions of the distribution system operator are taken into account so that these persons have the opportunity to act independently;
3. the operator of the distribution system has sufficient rights to make decisions, independently of the integrated natural gas enterprise, regarding the operation, maintenance, and development of the natural gas distribution networks. To fulfill these functions, the distribution system operator must have the necessary resources, including human, technical, physical, and financial resources.

According to Art. 46 of Law 108/2016, the functions and obligations of the distribution system operator, inter alia, are:

• to exploit, maintain, modernize, and develop natural gas distribution networks in safe, reliable, and efficient conditions, in compliance with the provisions aimed at ensuring environmental protection. When operating, maintaining, modernizing, and developing natural gas distribution networks, the distribution system operator must apply modern methods of energy efficiency management and/or demand management;
• to ensure the long-term capacity of the natural gas distribution networks to cover reasonable demands for natural gas distribution, elaborating and executing plans for the development of natural gas distribution networks, taking into account, in particular, the forecast of natural gas consumption natural gases;
• to manage natural gas flows from natural gas distribution networks;
• not to discriminate between system users or between categories of system users, avoiding, in particular, discrimination in favor of related enterprises;
• to present to operators of transmission systems, operators of distribution systems that operate natural gas networks interconnected with its network, and operators of storage facilities sufficient information to ensure the security and efficiency of operation, as well as the coordinated development and interoperability of natural gas networks and interconnected storage facilities;
• to conclude operating agreements in accordance with the normative regulatory acts approved by the ANRE;
• to present, in an intelligible, accessible, and quantifiable way, all the information necessary for system users for efficient access to the natural gas distribution networks and for the use of these networks, as well as the information regarding the services they provide and the relevant conditions applied;
• to respond to any service request within the terms and conditions established in this law, in the Code of Natural Gas Networks, in the Regulation on the development of natural gas distribution networks, in the Regulation on connection, in the Regulation on the measurement of natural gas for commercial purposes, in the Regulation on the quality of natural gas transport and distribution services, as well as in other normative regulatory acts approved by the ANRE;
• to undertake other necessary measures for the provision of the natural gas distribution service, including system services, as well as for the fulfillment of public service obligations under regulated, fair and non-discriminatory conditions for all system users, in accordance with the conditions stipulated in the license, with the provisions of this law, of the Regulation on the connection, of the Code of Natural Gas Networks, of the Regulation on the measurement of natural gas for commercial purposes, of the Regulation on the quality of natural gas transport and distribution services, of the Rules of the natural gas market, of other normative regulatory acts approved by the ANRE, respecting the principles of accessibility, availability, reliability, continuity, efficiency, quality and transparency;
• to comply, in the licensed activity, with the normative acts in the field of environmental protection, including construction norms, technical standards, and normative-technical documents, established by law, in order to reduce the impact of natural gas distribution networks on the environment.

8. Trading 

8.1. Trading License 

Moldovan law regulates the trading activity in the gas sector. According to Art.84² of Law 108/2016 on natural gas, the trader conducts his activity exclusively on the wholesale natural gas market, provided he holds the license for natural gas trading, in accordance with this law and the Rules of the natural gas market.

The trader is forbidden to engage in anti-competitive practices on the natural gas market and to prevent or attempt to prevent, illegally, the employment of other license holders or potential competitors in the activity of the trader, in compliance with the legal provisions regarding competition. If the trader also carries out other activities on the natural gas market, the trader is obliged to ensure accounting separation The trader is obliged to submit to the ANRE semi-annual reports on the activity carried out on the wholesale natural gas market, as well as other requested information, in the manner and terms established by the ANRE.

The trader is obliged to maintain the financial resources necessary to participate in the wholesale natural gas market. The trader cannot simultaneously hold the natural gas trading license and the natural gas supply license.

The license for gas trading activity is issued for 10 years and the fee for issuance of the license is MDL 3,250.

In order to obtain a license for natural gas trading, the applicant must meet the following conditions:

• to be registered in the Republic of Moldova and to present a confirmatory document in this sense;
• to present the financial situation for the previous year, in the case of the active legal entity, or extract from the bank account, in the case of starting the business;
• to dispose of the amount of MDL 1 million on the date on which the application for the issuance of the license is registered, as well as during the entire period of validity of the license, an amount for which, through confirmatory documents, provenance from one or more of the following sources:
  • the amount available from bank credit lines that the applicant benefits from, according to the supporting financial documents in this regard;
  • financial resources that the applicant's associates and/or shareholders make available to him through financing/loan contracts or through other types of contracts accompanied by supporting financial documents;
  • available from the current account, proven with the applicant's bank account statement.

The persons applying for the license are to be positively approved by the Information and Security Service and the Money Laundering Prevention and Combating Service in terms of the risks related to state security, money laundering, and terrorist financing (the opinions are requested by the ANRE in the procedure for examining the declaration regarding issuance of licenses. During the approval process, the term of examination of the declaration regarding the issuance of licenses is suspended).

8.2. Products

There are no restrictions on trading petroleum products or natural gas.

9. Competition

9.1. Authorities

Competition Council;

National ANRE for Energy Regulation

9.2. Anti-Competitive Actions 

The Competition Council is a responsible organ on competition-related matters and has the power to monitor anti-competitive actions. According to Art. 39 of Competition Law no.183/2012, the Competition Council has the following duties, inter alia:

• promotes competitive culture;
• elaborates the normative acts necessary for the implementation of competition legislation, advertising, and regulation of railway transport, as well as in the field of unfair commercial practices, within the limits of its powers;
• approves draft normative acts that may have an anti-competitive impact;
• notifies the competent bodies regarding the incompatibility of normative acts with competition legislation, advertising, and regulation of railway transport, as well as in the field of unfair commercial practices, within the limits of its powers;
• investigates anti-competitive practices, unfair competition, and other violations of competition legislation, within the limits of its powers;
• adopt decisions provided by law for cases of economic concentrations;
• authorize, monitor, and report state aid;
• submits actions to the court regarding the cases related to his attributions.

10. Stability Clause and Dispute Resolution 

10.1. Stability Clause 

Not regulated under Moldovan law.

10.2. Compulsory Dispute Resolution Procedure

In the gas sector, according to Arts. 109-111 of Law 108/2016 on natural gas, the ANRE is the extra-judicial body to examine the disputes concerning:

• Disputes, including cross-border disputes, over the refusal of the transmission system operator to grant access to natural gas transmission networks;
• Disagreements between natural gas companies regarding the application of the applicable law;
• Disagreements between consumers, system users, and natural gas suppliers concerning the application of the law, as well as between users and the closed distribution system operator.

If extra-judicial settlement of the dispute fails, then the dispute is settled in Moldovan courts according to general procedure, as provided by the Code of Civil Procedure.

In the oil sector, in accordance with Art.28 (4) of Law 461/2001 on the petroleum products market, the disputes between participants in the oil products market are examined in competent courts.

In all sectors, disputes between any market participant and ANRE are settled according to the administrative procedure governed by the Administrative Code.

10.3. International Treaty Protection 

Moldova ratified the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, on July 10, 1998, and the Convention on the Settlement of Investment Disputes between States and Nationals of Other States, on May 5, 2011.

In terms of international treaty protection of foreign investments, as mentioned above, Moldova is a signatory of the Energy Charter Treaty as well as a party to 40 Bilateral Investment Agreements.

Regarding recognition and enforcement of foreign arbitral awards, all final and binding arbitral awards are recognized in Moldova following recognition and granting of enforcement procedures, governed by arts. 475 – 476 of the Code of Civil Procedure. In Moldova there are two levels of jurisdictions in examining the requests for recognition and enforcement of foreign arbitral awards: a) Courts of Appeal; and b) the Supreme Court of Justice.

The grounds for refusal of recognition and enforcement of foreign arbitral awards under the Moldovan Code of Civil Procedure are quite similar to those indicated in Art. V of the New York Convention, namely:

Only if the party invokes such a ground:

1. one of the parties to the arbitration agreement did not have full capacity to exercise or the arbitration agreement is not valid according to the law to which the parties have subordinated it or, in the absence of its establishment, according to the law of the country where the decision was pronounced; or
2. the party against whom the decision is issued was not properly informed about the appointment of the arbitrator or about the arbitration procedure or, for other reasons, was not able to present its means of defense; or
3. the decision was pronounced on a dispute that is not provided for by the arbitration agreement or that does not fall under the terms of the arbitration agreement, or the decision contains provisions on issues that exceed the limits of the arbitration agreement; or
4. the establishment of the arbitral tribunal or the arbitral procedure did not correspond to the agreement of the parties or, in the absence of such an agreement, was not in accordance with the law of the country where the arbitration took place; or
5. the arbitral decision has not become binding for the parties or has been abolished or its execution has been suspended by the court or by a competent authority of the country in which or according to the law of which it was pronounced.

Ex officio by the court:

1. the subject matter of the dispute cannot be settled by arbitration according to the law of the Republic of Moldova; or
2. the recognition or approval of the enforced execution of the arbitration decision is contrary to the public order of the Republic of Moldova.