Journalist Pavel Zingan in an interview with Ruslan Gorun, Director of “SD Energy Engineering Group” LLC.
Although I have conducted interviews with business people for over twenty years, the topic of my conversation with Ruslan Gorun was new to me. Only a few years ago, no local company (other than Moldovagaz) was dedicated to supplying natural gas to the country. As the energy market enters a period of liberalization, the concept of a private trader has emerged.
“SD Energy Engineering Group” has become one of Moldova’s first private natural gas traders. Therefore, this interview is an opportunity to learn how the natural gas market in Moldova has changed in recent years.
Ruslan, hello. Ten years ago, no one would have believed private natural gas traders would operate on the local market. The natural gas trade was monopolized entirely. When did the process of de-monopolization begin?
For us, it started in February 2020, when we received our license to operate with natural gas. This became possible as part of the economic integration processes in the European sector. One of the conditions for this integration is the de-monopolization of the energy sector, a process that has already taken place in Europe. I won’t go into the theoretical details of these processes, but there is a set of energy packages or, in other words, EU directives in the field of gas and electricity supply. Their main goal is to de-monopolize the local energy market, ensure open competition, and provide freedom of choice for suppliers.
You say you entered this market four years ago. I wonder what preceded such a decision, because the field is very specific and requires special professional training?
I was involved in the construction of the Iasi-Ungheni-Chișinau gas pipeline and inadvertently entered the professional environment of gas workers. Along the way, I entered one aspect or another of the work, not only technological, but also organizational, financial, legal. And when the process of liberalization of the energy market was launched in 2019, I started working on licensing.
If I understood correctly, now there is not only Moldovagaz on the market, but also private companies operating in the field with the same rights?
Not exactly. According to current legislation, there are two types of licenses. One refers to the regulated gas supply tariff, and the second type is for the unregulated tariff. By definition, it’s clear that the regulated tariff is set by the state regulatory authority – Moldovagaz, which holds such a license.
So, you have a license related to an unregulated tariff?
Yes.
Where do you buy the gas from?
We can work both with exchanges and individual traders. We often buy natural gas from Europe through our European subsidiaries because the legislation allows us to open them.
Who are your clients?
We sell natural gas larger companies in Moldova. Our clients are companies where energy costs make up a significant portion of production expenses – such as canning factories and construction material factories like brickworks or tile manufacturers. Now, businesses have the option to choose. Private suppliers offer more flexibility, and the cost component is lower for us. Competition between suppliers is always beneficial for consumers.
Do you also handle gas storage?
No, we don’t have those infrastructure costs. The gas trade in “the pipeline” is somewhat virtual. We buy gas from Europe and pay for its transport to distribution stations in Moldova, so our buyers pay for the gas in the system, and we, simply put, supply the same amount of gas to the system.
With such a workload, I can’t imagine companies operating without credit lines.
Of course, partnership with banks is essential for us. Despite the general distrust of our type of business a few years ago, and here I don't just mean the banks, even the tax inspectorate had a lot of questions, maib believed in our capabilities, and we developed a trustful partnership.
Maib is a partner for my business interviews, so I’m glad to hear that. Which maib products do you use in particular?
Business loans, of course. Also, I’m especially pleased with the product I’ve recently benefited from. As an individual, I’m an alto customer. I recently opened a maib business premium card for my company – the Visa Platinum Business card – and it’s very convenient, especially considering the many business trips.
What benefits does this card offer you?
I can pay the company’s travelling expenses directly routed to the accounting department. It also includes excellent benefits – Visa concierge, access to airport business lounges, priority airport service – Fast Track International, and cashback. In general, everything you need when travelling. The business card is also convenient for employees. We continue to build gas pipelines, and when a supervisor has a business card with them, they save a lot of time, as most of the necessary purchases are made using the maib business card.
