25.06.2009

Eustream working on gas connection between Slovakia and Hungary

The largest carrier of Russian natural gas in the EU, Eustream, signed a Memorandum of Understanding with the Hungarian gas transmission company FGSZ Zrt. last week. The main goal of the co-operation is to analyze possibilities of connecting the Slovak and Hungarian gas transmission systems. According to Eustream’s expectations, the project could be implemented within a period of three years.

The planned 100 km long pipeline would connect Veľký Krtíš on the Slovak side with Vecses in Hungary. The project of interconnecting Slovakia with adjacent network operators has been officially implemented into the European Economic Recovery Plan (EERP) prepared by the European Council in December 2008. Increasing demand for securing reliable gas supplies is one of the reasons for establishing a program to aid economic recovery by granting financial assistance to projects in the field of energy. “By creating a new interconnection of the existing pipeline systems in our region, we would like to help increase the security of gas supplies for Slovakia and the liquidity of the market in Central Europe” commented Antoine Jourdain, Chairman of the Board of Directors of Eustream.

“The total investment needs are substantially above EUR 100 million, and financial support envisaged under the EERP is EUR 30 million,” added Andreas Rau, member of the Board of Directors of Eustream. The project costs as well as the transmitted gas volumes will depend on real market demand.

Through the European Economic Recovery Plan, the European Council plans to allocate financial assistance worth approx. EUR 2.4 billion for gas and electricity infrastructure projects in the period 2009-2010. The supported projects should contribute to the security and diversification of sources of energy, routes and supplies, as well as to the integration of the internal energy market, with particular regard to cross-border areas.
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