MOUs for Eastring pipeline to be signed soon
Published by Elizabeth Corner,
Senior Editor
World Pipelines,
Slovakia's gas transmission company Eustream has said it expects to sign memoranda of understanding (MOUs) on the construction of the Eastring gas pipeline with Hungary, Romania and Bulgaria in the near future.
A Slovak news agency quoted Eustream spokesman Vahram Chuguryan as saying on Saturday that the four countries have already set up working groups comprising officials of their respective gas transportation systems.
The memoranda should contain basic parameters of the future participation of the countries in the project, Chuguryan said.
Slovakia has proposed Eastring as an option for diversifying gas supply infrastructure in Europe. Under the proposal, Eastring is to carry gas from the Slovak-Ukrainian border to the Bulgarian-Turkish border, opening opportunities for gas supplies to Bulgaria from Northern and Western Europe.
Eastring could also be connected to a potential gas hub in Turkey, enabling reverse-flow supplies from the Caspian basin, Iraq, Iran, and the Eastern Mediterranean.
According to Eustream Director General Rastislav Nukovic Eastring construction could be funded from three main sources - a consortium of companies from Bulgaria, Hungary, Romania and Slovakia; the European Union; and the European Investment Bank or commercial banks.
The length of the proposed pipeline could be between 744 and 1015 km depending on the selected route.
The Eastring pipeline should be able to carry 20 billion cubic metres of gas a year in the first phase and up to double that amount in the final phase. The expected cost of building the first phase is between €1.1 billion and €1.5 billion.
The pipeline should start commercial operation by the end of 2018.
"Slovakia should obtain, thanks to this project, a strong position in the context of gas networks in Europe," Economy Minister Pavol Pavlis stated.
Edited from various sources by Elizabeth Corner
Sources: Novinite, Global Post
Read the article online at: https://www.worldpipelines.com/business-news/09032015/mous-for-eastring-pipeline-to-be-signed-soon/
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