Közép-Európai Gázterminál to build underground LPG storage
Tuesday, May 16, 2006, 16:50
Közép-Európai Gázterminál Zrt, a Hungarian trader of liquefied petroleum gas, plans to spend Ft 18 billion ($87 million) building storage facilities and a port in Hungary to store fuel for other companies, Bloomberg reported.
The company plans to build underground storage with capacity of 50,000 metric tons at its site in Dunaalmás, north Hungary, by 2010, co-owner József Steier said today. KEG is seeking partners to finance construction of the underground storage, valued at Ft 15 billion, he added.
Separately, four smaller LPG storage units with combined capacity of 8,000 metric tons will be built by next March and a port on the Danube completed two months later, Steier said. The storage units and port will cost Ft 3 billion, he said.
KEG, which started LPG trading 10 years ago and is owned by six individuals, currently sells bottled gas to Hungarian companies and households. It plans to become a logistics services company storing LPG for other companies once the storage units and port are built, Steier said.