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Hungarian bottled gas trader KEG to build €14 mln terminal

Közép-Európai Gázterminál Zrt, a Hungarian trader of bottled liquid propane-butane gas, plans to spend Ft 3.5 billion (€13.5 million) to build a terminal on the river Danube.

Közép-Európai Gázterminál Zrt, owned by local private investors, is building a storage facility and a port at Dunaalmás, 65 kilometers (40 miles) west of Budapest, the company said on its Web site. The company aims to reach annual capacity of 250,000 tons a year. The facility will be Europe's biggest, according to KEG.

The company is counting on the growing attractiveness of bottled LPG, as the government raises the price of natural gas by subsidy cuts. Hungary uses more gas per capita than any other European Union country except the Netherlands. „Bottled gas can be an alternative for many households,” CEO József Steier said on the Web site. „Its price has never been subsidized, so the cost won't be affected by the price increases.”

Mol Nyrt, the country's largest refiner, on November 23 won a contract to build a natural-gas storage complex. The Budapest-based company plans to complete the 1.2 billion-cubic-meter facility by 2010. Hungary's state-owned MTI news agency yesterday reported the KEG investment plan. (Bloomberg)