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MVM unit establishes project company for Hungary-Slovakia gas interconnector

Shareholders of OVIT, a unit of the state-owned Hungarian Electricity Works (MVM), decided to establish a project company to build a pipeline connecting gas networks in Hungary and Slovakia on Tuesday.

The project company, called Magyar Gaz Tranzit, will be set up with registered capital of HUF 2 billion. It is expected to start operations at the beginning of 2012. Magyar Gaz Tranzit will build and operate the part of the interconnector in Hungary.

FGSZ Foldgazszallito, a unit of MOL, was to have built the interconnector with Slovak partner Eurstream, but it later backed down and Hungary's National Development Ministry asked the European Commission to transfer to OVIT a € 26 million grant it won to support the project.