Arad-Szeged gas pipeline inaugurated

Hungarian FGSZ Földgázszállító Zrt. and Romanian Transgaz S.A. jointly implemented the pipeline to enable natural gas transmission between the two countries. Interconnection of the transmission systems of the two neighbouring EU Member States enables a higher level of market integrity, boosts competition and increases the security of energy supply within the region.

The Arad-Szeged 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 3 billion m³ capacity cost nearly E33.3 million for the Hungarian gas transmission company. The European Union supported the implementation of the project by E17 million 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.

The transmission pipeline that currently transmits gas from Hungary to Romania can be converted to bi-directional with additional investments on the Romanian side that would further increase the significance of this interconnection pipeline.

Zsolt Hernádi, MOL Chairman-CEO stated that: ”The MOL Group believes that an integrated gas market can be established in the CEE region through regional co-operation. The standard infrastructure-based platform can facilitate purchasing of gas from new sources within the region. The Arad-Szeged interconnection gas pipeline boosts market competition that will present several advantages to both traders and consumers. Relying on future transmission projects, like the Nabucco pipeline, such cross-border solutions interconnecting regions will substantially increase the security of supply.

The opened pipeline section will be followed by a number of similar initiatives, since the Croatian-Hungarian interconnection pipeline is under implementation, feasibility of a Hungarian-Slovakian interconnection is under assessment and the feasibility study for the Hungarian-Slovenian interconnection is being prepared. This inauguration is a major first step that paves the way for a uniform regional gas market.”

Read the article online at: https://www.worldpipelines.com/business-news/18102010/arad-szeged_gas_pipeline_inaugurated/