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MSZKSZ ready to sign contract on strategic gas reserve with Mol

A spokesman for MSZKSZ Strategic Gas Reserve, a company set up by Hungary's oil and gas companies to organize the construction of a government-mandated strategic gas reserve, is ready to sign a contract on building the 1.2 bln cubic-meter reserve with oil and gas company Mol.

Mol was declared the winner of a tender to build the reserve, expected to cost Ft 100-150 billion, in November. The tender was organized by MSZKSZ Strategic Gas Reserve, a company set up by an association of Hungarian fossil fuels companies. Business daily Napi Gazdaság reported on Wednesday that the contract would likely be signed on Friday, a little more than a week later than planned. Mol is expected to set up a joint venture with MSZKSZ Strategic Gas Reserve, to build the reserve, the paper wrote. Mol would hold 62% in the JV. The reserve is to be built at the Szőreg gas field, Napi Gazdaság wrote. The JV would collect annual revenue of Ft 12.7 billion from fees for operating the reserve, the paper calculated. Legislation approved last spring requires the construction of a strategic gas reserve with capacity of at least 1.2 billion cubic meter by 2010. (Mti-Eco)