The gas trading division of energy major MOL, MOL Földgázszállító Zrt has signed a cooperation agreement with Romanian peer Transgaz on constructing a cross-border gas pipeline between Arad and Szeged.
The high pressure pipe of 700 millimeters in diameter is to be put into operation in late 2009. The pipeline will connect the Romanian town of Arad with the Hungarian town of Szeged and will be built by the end of 2009, MOL Földgázszállitó said. The pipeline will stretch over 47 kilometers in Hungary and another 61.7 kilometers on the Romanian side of the border. Edina Lakatos, spokesperson for MOL Földgázszállító Zrt said the Hungarian section in to cost Ft 9 billion (about $51 million). „The two countries do not have a connection and a new connection increases safety of supply and diversification increases competition,” János Zsuga, the CEO of MOL Földgázszállitó told Reuters in a brief telephone interview. Transgaz CEO Ioan Rusu added, the main purpose of the agreement is for the two companies to live up to expectations of continued reliability in supply. . MOL is also in the process of expanding its gas connection with Ukraine. The 100 kilometers expansion, which the firm earlier estimated to cost around Ft 48 billion (about $275 million), was on track for completion by 2010, Zsuga said. (Gazdasági Rádió)