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Construction of the domestic section of the natural gas transmission pipeline between Arad and Szeged has started

The Hungarian and Romanian high pressure gas pipeline systems will be inter-connected by 2009-end

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The Board of Directors of FGSZ Ltd. decided to launch the public procurement process, and, as a consequence, construction of the domestic section of the natural gas transmission pipeline between Arad and Szeged has started. The Company’s decision was required for implementing the provisions specified in the Agreement of Cooperation signed with the Romanian party this January.

FGSZ Ltd. and Transgaz, as the owners and operators of the Hungarian and Romanian gas pipelines, respectively, declared at the end of January to have the natural gas systems of the two countries inter-connected through a new pipeline by the end of 2009. The domestic section of this pipeline will be 47 km long, with 700 mm diameter and 63 bar pressure, connecting Algyő and Csanádpalota. Construction of the high pressure pipeline reaching the border has already begun on the Romanian side, and Transgaz will need to build a further 29 km long section by the end of 2009.

The 500.000 cubic metre/hour capacity transit pipeline will be designed so that it can transport gas both ways, thus it can improve the security of supply for the gas consumers in both countries. „As a result of constructing the Arad-Szeged natural gas transmission pipeline FGSZ Ltd. can get closer to the implementation of MOL Group gas strategy approved in January 2007, which projects the establishment of a Central/Eastern European gas transmission and storage hub in Hungary” – said János Zsuga, FGSZ CEO following the board meeting.

The project perfectly fits also to the NETS Project recently launched by FGSZ, as one of its objectives is also to improve the security of gas supply through the diversification of the transmission routes and sources of supply.



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