FGSZ and Transgaz signed a Development Agreement
At Arad FGSZ Zrt. and Transgaz signed a new contract, a so-called Development Agreement on July 1, 2008.
The Hungarian and the Romanian company signed the Memorandum of
Understanding (MOU) in January 2008 for the inter-connection of their
natural gas transmission systems in order that, as the energy companies
of the neighbouring EU-member states, they can ensure compliance with
the provisions of both the EU Directive (67/EC) and the legal
environment of the two countries, respectively. The recently signed
document specifies the terms and conditions for the cooperation
regarding the project implementation, as well as the structure of
guarantee between the contracting parties.
The parties agreed in the said document that FGSZ Zrt. would construct the pipeline section in Hungary, whereas Transgaz would be responsible for constructing the section in Romania.
The parties will finance the construction costs for the relevant
sections, respectively. The pipeline first will transmit natural gas
from Hungary towards Romania,
but the parties did not exclude the possibility for securing the
technical conditions for a potential reserve flow either. FGSZ Zrt. and
Transgaz intend to prepare and sign two more contracts regarding the
operations and selling the transmission capacity of the pipeline.
The new pipeline will have the following technical parameters: in the territory of Romania
the total length of the pipeline will be 61,7 km (of this 36,7 km has
already been completed), with 700 mm nominal diameter. In the territory of Hungary the total length of the new pipeline will be 47 km. The CAPEX planned for the development project in Hungary is 9 bn HUF.
The purpose of the agreement is, similarly to NETS project, to
improve the security of supply, and to diversify the routes and sources
of gas supply.
