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Friday, 09 January, 2009, 22:40 GMT | more >>

MOL strikes Romania pipe deal



By Upstream staff 

Hungarian player MOL has signed a deal with Romania's Transgaz to build a 109-kilometre natural gas pipeline connecting the two countries, MOL's natural gas unit said today.

The pipeline will connect the Romanian town of Arad with the Hungarian town of Szeged and will be built by the end of next year, a Reuters report said.

"The two countries do not have a connection and a new connection increases safety of supply and diversification increases competition," MOL spokesman Janos Zsuga told Reuters in a brief telephone interview.

The Romanian section of the pipeline will stretch 61.7 kilometres, while the new section on the Hungarian side will be around 47 kilometres, and the pipeline will have capacity of around 5 million to 7 million cubic metres per day, Zsuga said.

The two companies will build and operate their section of the pipeline independently and MOL will invest around 9 billion forints ($51.22 million) in the construction of the pipeline on the Hungarian side, Zsuga said.

MOL is also in the process of expanding its gas connection with Ukraine.

The 100 kilometre expansion, which the company earlier estimated to cost around 48 billion forints, was on track for completion by 2010, Zsuga told the news agency.


Thursday, 24 January, 2008, 15:02 GMT  | last updated: Thursday, 24 January, 2008, 15:02 GMT

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