Final investment decision on South Stream in Hungary by end of October

Source: Gazprom

Today a Gazprom delegation led by Alexey Miller, Chairman of the Gazprom Management Committee paid a working visit to the Republic of Hungary.

A meeting with Viktor Orban, Prime Minister of Hungary was held as part of the visit.

The parties discussed the bilateral cooperation in the energy sector. The points at issue included Russian natural gas supplies to Hungary and the progress with the South Stream project implementation.

Today the procedure of replacing the accredited company responsible for the South Stream project implementation in Hungary was finished. Alexey Miller and Viktor Orban mentioned that the project was being implemented in strict compliance with the schedule and that the final investment decision on the project was to be made by the end of October 2012.

Background

In 2011 Russian gas supplies to Hungary totaled some 6.26 billion cubic meters.

With a view to diversify the natural gas export routes, Gazprom is implementing the project for construction of a gas pipeline running under the Black Sea to the countries of Southern and Central Europe – the South Stream project.

In February 2008 Russia and Hungary signed the Intergovernmental Agreement envisaging Hungary's engagement into the South Stream gas transmission system project.

On March 10, 2009 Gazprom and Magyar Fejlesztesi Bank (MFB) signed the Basic Cooperation Agreement to construct a gas pipeline and transit natural gas via the Republic of Hungary as part of the South Stream project.

On January 29, 2010 Gazprom and MFB created the South Stream Hungary Zrt joint project company.

In October 2011 the Hungarian Government made a decision to replace the accredited company responsible for the South Stream project implementation in Hungary. MVM Zrt. (Hungarian Power Companies) will become a new contractor.


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