Eustream and FGSZ take another step towards the gas interconnector between Slovakia and Hungary – Open Season starting on 2 November

Bratislava – The largest carrier of Russian natural gas in the European Union, eustream, a.s. (Eustream), continues in its activities to connect up the gas transmission systems of the Slovak Republic and Hungary. Parties interested in the transmission capacity may start registering via the company’s internet site www.eustream.sk starting 2 November 2009. 

The connection between the Hungarian and the Slovak transmission systems will enhance the energy connections in Central Europe. By means of the non-binding Open season process, Eustream and its Hungarian partner FGSZ Zrt., would like to obtain an overview of market demand. Simultaneously, both companies are prepared to discuss with stakeholders their indicative requests for transmission capacities. Information provided by traders in this phase will not be considered legally binding. Traders that register will be invited to a collective information meeting.

A Memorandum of Understanding to build a new gas pipeline was signed by Eustream and FGSZ Zrt. in June. The planned gas pipeline of approximately 115 km in length should connect the Slovak high-pressure pipelines at Veľký Krtíš with the Hungarian transmission system at Vecsés in the suburbs of Budapest. Eustream projects that the gas pipeline could start its operation at the beginning of 2013.

“The idea of this project is very simple. Additional cross-border capacities will enhance gas market liquidity and increase the security of gas supply in the region,” emphasisedAndreas Rau, Chairman of the Board of Directors of Eustream.

“Moreover, the project can be connected to other European gas infrastructure systems in the future, such as Nabucco, South Stream or the Croatian LNG terminal” added his colleague on the board, Antoine Jourdain. In the event of a restriction to natural gas supplies, the Slovak-Hungarian connection could be used to receive gas supplies from western parts of Europe through the Czech Republic, Slovakia, Hungary, onwards to Serbia, Bosnia and Herzegovina, Romania and Croatia.

The project of connecting Slovakia with Hungary is included in the European Economic Recovery Plan (EERP), which was initiated by the European Commission in December 2008. With the help of this Plan, the European Union would like to allocate financial support of approximately € 2.4 billion as part of gas and electricity infrastructure projects. The supported projects should contribute to the security and diversification of energy sources and routes, as well as to integration of the internal energy market with specific emphasis given to cross-border areas.