Eustream and OVIT have signed a memorandum of understanding to demonstrate strong support to the new phase of project implementation, a press statement released by the two companies says.
The companies agreed on details of further cooperation and key milestones for the full implementation and financing of the project. In order to guarantee the continuity of the project, OVIT signed a cooperation agreement with natural gas transmission company FGSz.
“Eustream appreciates that our previous and current Hungarian partner companies agreed on their strong cooperation on the technical aspects of the project. The most important for us is fluent continuity of the project in line with the agreed timetable”, emphasized Andreas Rau, chairman of the board of directors of Eustream.
Eustream and OVIT scheduled commissioning of the pipeline for January 1, 2015.
The OVIT shareholders’ meeting adopted a resolution on September 6, 2011 according to which the equity capital of the company will be increased by HUF 2 billion by the owner, Magyar Villamos Művek Zrt (MVM), and in the interest of implementing the Hungarian–Slovak gas transmission interconnection pipeline project, a new company (Magyar Gáz Tranzit ZRt) will be established. The new project company will carry on the gas licensee activity of OVIT.
The project of interconnection between the gas pipeline systems of Hungary and the Slovak Republic is viable and economically feasible, the press release reads. In addition, it remains a top priority for both the Hungarian and the Slovak members, as well as for the respective national governments and the European Commission.
The project is expected to diversify routes and contribute to the European energy security. Additional cross-border capacity will increase gas market liquidity and also improve the future security of gas supply for the Central European region, the press release says. The project will be partially supported by funding from the European Energy Program for Recovery.
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