23.05.2012
The Slovak-Hungarian Gas Interconnector project reached another milestone
After signing the Joint Development Agreement (JDA) between Eustream Slovak gas transmission system operator and its Hungarian partner Magyar Gáz Tranzit, the project of the gas pipeline interconnector between Slovakia and Hungary made another important step towards its implementation. Both companies have committed in JDA to bring the project to successful conclusion and agreed on important rules and conditions for the further work.
JDA is a document which describes how the work has to be organized between companies in the Slovak-Hungarian Gas Pipeline Interconnector Project.
Gunnar Löwensen, Chairman of the Board of Directors of Eustream,
“We are happy to state that the dynamic and constructive approach which we have upheld brings a visible progress in this project of European importance. Eustream is confident, that the market participants will confirm their interest now, so that the gas interconnection between Slovakia and Hungary can be properly completed.”
Both partners of the project Eustream on the Slovak side and MGT on the Hungarian side agreed that new interconnector will start commercial operation on 1. January 2015.
The project of interconnection between the gas pipeline systems of Slovak Republic and Hungary is viable and economically feasible. It is a top priority not only for the both promoting companies but also for the national governments and the European Commission.
The project will significantly contribute to the European energy security and to the diversification of the transmission routes. The new cross-border capacity will enhance the liquidity of the gas market and also improve the future security of gas supply for the Central European region. The strategic importance of the project for Slovakia includes also the access of the country to the planned gas corridors from the south or to the LNG terminal in Croatia and for Hungary the access of the country to Western-European gas networks.
Eustream as well as MGT have already announced the public procurement for the pipeline material and works for the Slovak-Hungarian Gas Pipeline Interconnector. Expected value of the project is estimated at EUR 160 million. The project will be partially supported by funding from the European Energy Programme for Recovery (EEPR in the amount of EUR 30 million).