Slovakia and Hungary: new gas pipeline in 2015

Slovakia and Hungary: new gas pipeline in 2015

The gas pipeline that will connect energy networks in Slovakia and Hungary officially starts its work in 2015. It was announced on September 6, 2011 by the spokesman of the Hungarian energy operator Ovit Zrt.

Ovit company will manage the construction of the pipeline from the Hungarian side. To control the building in January 2012 Ovit will establish the subsidiary gas transportation company.

For Hungary and Slovakia the decision to launch a new gas pipeline is strategic. The mechanism of the pipeline construction will be finally determined after the ratification of the Slovak-Hungarian parliament agreement. But it can already be said that the level of interest of both countries in the project will make the parliamentary ratification a technical procedure.

After the ratification of the treaty in mid-October 2011 will be announced the tender for the construction of the pipeline. It is expected that the contract for construction of the pipeline could be signed as early as March 2012, according to Vilaggazdasag publication.

It is worth noting that the new pipeline will make Slovakia closer to the Southern Europe gas transit systems. Considering the fact that not so long ago Slovakia announced about the interest to jointly develop with Ukraine the Black Sea shelf, the upcoming optimization of the gas transit system will allow the country to diversify its natural gas supplies and reduce energy dependence from Russia.

From the Slovak side the project on creating the gas pipeline will be under the control of the Eurstream company.

The cost of the new pipeline, according to the Hungarian side, will be about 180 million Euros, which is almost a quarter less than the previously planned amount. In order to finance the construction of the pipeline Hungary received grants from the EU amounting at 26 million Euros.

Ilya Kalachev

Date: 10/09/2011