E.ON sells 30 mln cubic meters of gas storage

Energy Trade

E.ON Földgáz Storage sold storage capacity of 30 million cubic meters of gas, the entire amount offered, at Hungary's first storage-capacity auction on Monday.

Three bidders, including free market traders, purchased the E.ON storage capacity offered in 10, 3-million-cubic-meter portions. E.ON did not disclose the price only said it exceeded that set for public utilities.

E.ON Földgáz Storage has been providing gas storage capacities to gas providers and traders on the basis of negotiated procedures once a year. Monday's auction was the first capacity auction held as a result of excess capacity stemming from recent technical development.

E.ON Földgáz Storage board member Klaus G. Hammer said the increased demand for gas storage capacities reflects increasing competition on the market.

E.ON Földgáz expanded its storage capacity by 200 million cubic meters in 2007. The Hungarian alliance of hydrocarbon suppliers (MSZKSZ) is currently using the additional capacity for storing strategic reserves.

E.ON Földgáz Storage begun a project to increase its storage capacity by 600m cubic meters to 4.3 billion cubic meters by autumn 2009, compared to 3.4 million, in 2006 when E.ON acquired the company from MOL.

E.ON Földgáz has 11 partners in Hungary, while the company plans to seek foreign clients as a means of entering the regional gas-storage market. (MTI – Econews)

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