FGSZ, Ukrtransgaz sign interconnection agreement

Energy Trade

Hungarian gas delivery company FGSZ, a unit of MOL said it signed a new interconnection agreement on Friday with Ukrainian peer Ukrtransgaz on both forward and reverse flow across the border of the two countries.

The agreement, signed on May 29, is in compliance with the European Unionʼs Third Energy Package and is the first of its kind concluded between a gas TSO in an EU member state and Ukrtransgaz, FGSZ said. It should serve as a model for other TSOs in member states bordering Ukraine, it added.

"Complying with the EU’s newly adopted network codes, the Hungarian-Ukrainian Interconnection Agreement defines industry standard procedures for business-as-usual operation, and its provisions provide sufficient tools to govern the management of cross-border gas flows in times of supply crises as well," FGSZ said in a statement.

FGSZ noted that it had reactivated an idle interconnector pipeline between Hungary and Ukraine in March 2013 in response to the looming Ukrainian-Russian conflict, and used it within the legal framework of consecutive, temporary interconnection agreements. The capacity of the interconnector in the direction of Ukraine to Hungary is 26 bln cubic meters per year. Reverse flow capacity is 6.1 bln cubic meters per year.

ADVERTISEMENT

Budapest Named 5th Best City in Europe for Bargain Lovers Analysis

Budapest Named 5th Best City in Europe for Bargain Lovers

Parl't approves 2023 budget Parliament

Parl't approves 2023 budget

Danubius Hotels Appoints Group Director of Development Appointments

Danubius Hotels Appoints Group Director of Development

Muni Council Organizing Meeting to Improve Air Quality City

Muni Council Organizing Meeting to Improve Air Quality

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
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.