Agreement on Hungary section of South Stream project signed
Csaba Baji, President and CEO of the state-owned Hungarian electricity works MVM, and Aleksandr Medvedev, deputy president of Gazprom, signed the shareholders' agreement on the Hungarian section of the South Stream gas pipeline project in Budapest on Wednesday.
Baji said a final decision has been taken on the construction of the 229-km Hungarian section of the pipeline, which MVM's shareholders' meeting confirmed on Wednesday morning.
The pipeline section will have capacity to convey 30 billion cubic metres of natural gas a year. The investment is expected to cost €600 million, 70% of which would be covered from a loan. The investment is scheduled to be completed by January 1, 2016.
The South Stream gas pipeline will run from Russia under the Black Sea to Bulgaria and further to Greece, Italy and Austria, via Hungary. The pipeline will bypass Ukraine, whose disputes with Moscow have interrupted gas deliveries to Europe several times over recent years.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.