MVM's long-term strategy unaffected by scrapped South Stream plan

Energy Trade

Russia's decision to scrap plans to build the South Stream pipeline will not affect the long-term strategy of the state-owned Hungarian Electricity Works (MVM), György Harmati, the company's strategy chief said at a conference yesterday.

Harmati conceded that the pipeline would have supported the direct utilization of Hungary's gas storage facilities, noting that Gazprom already stores some of its gas in Hungary. MVM is the equal partner in a joint venture with Russia's Gazprom established to build the stretch of the pipeline that would have passed through Hungary.

The JV, called South Stream Hungary, had total assets of HUF 3.9 bln at the end of 2013, public records show. But MVM decided to raise capital in the company by HUF 5 bln in autumn of this year. The South Stream pipeline was to deliver Russian gas to Europe via the Black Sea, bypassing Ukraine. From 2016, the pipeline was set to deliver about 30 billion cubic meters of gas a year across Hungary. Russian President Vladimir Putin said on Monday that the project was being scrapped because of opposition in Europe.

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

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.