Romania’s commodities exchange BRM, where 70% of the natural gas consumption is traded, opened a subsidiary in Moldova at Chisinau - BRM East Energy, Mold-street.com reported.

The company was set up in March and will be operational at the beginning of 2022, with its focus on the balancing energy markets of natural gas and electricity. The equipment is already in place, and the exchange can start operating as of January 2022, BRM’s president Gabriel Purice confirmed.

BRM’s president said that the Romanian institution is working with the European Bank for Reconstruction and Development (EBRD) to help the market regulator ANRE design the balancing market for natural gas.

After the design of the natural gas balancing market is completed, BRM East Energy can begin operating it, as well as the day-ahead market, intraday market and other term markets (weekly, monthly). In principle, it can facilitate trading with electricity, but there is not much competition for this, BRM’s president explained.

The electricity market is dominated by the GRES power plant in Cuciurgan, in Transnistria. The competition in the natural gas market is limited as well, but the existing interconnectors, including the new one to Romania (Iasi-Ungheni), facilitate the competition that may develop in the future.

(Photo: Dmitrijs Kaminskis | Dreamstime.com)

andrei@romania-insider.com