The pipeline jointly implemented by the Hungarian FGSZ Földgázszállító Zrt. and the Romanian Transgaz S.A. makes natural gas transmission possible between the two countries. Connecting the pipeline systems of two neighbouring EU member states subservices higher market integration, competition and increases the security of energy supply in the region.
The Hungarian-Romanian gas pipeline was opened by Günther Oettinger, EU Commissioner for Energy, Emil Boc, Romanian Prime Minister and Viktor Orbán, Hungarian Prime Minister at the inauguration ceremony held at the Csanádpalota Metering Station. Implementation of the 47-km long Hungarian section of the 109-km long pipeline of maximum 4.5 billion m3 capacity cost nearly 33.3 million EUR for the Hungarian gas transmission company.
The European Union supported the implementation of the project by 17 million EUR from the European Energy Economic Recovery Program (EERP) budget. The gas project - the first of its kind implemented with EERP assistance -, indicates the pivotal role EU plays in the interconnection of CEE energy infrastructures.
FGSZ Ltd. and Transgaz S.A., as the owners and operators of the Hungarian and Romanian high-pressure natural gas transmission systems, signed a Memorandum of Understanding in January 2008. For the time being the pipeline is unidirectional, from Hungary towards Romania. Following the further investments on Romanian side by the Romanian party, there will be possibility to transport natural gas from Romania toward Hungary thus enhancing the significance of the interconnector pipeline.
The Hungarian-Romanian gas pipeline is the first tangible step to establish a regional infrastructure-based platform in the CEE region. The Arad-Szeged interconnection gas pipeline boosts market competition that will present several advantages to both traders and consumers. In addition, it significantly increases the security of supply and the competition between sources is expected to lead to lower gas prices. The opened pipeline section will be followed by a number of similar initiatives, for example the Croatian-Hungarian interconnection pipeline is under implementation and is expected to be inaugurated in the first half of the next year. Besides, the feasibility study of a Hungarian-Slovakian and a Hungarian-Slovenian interconnection is being prepared.