Russian gas compnay Gazprom has signed a Basic Cooperation Agreement (BCA) with MFB, the Hungarian Development Bank, for the construction of a gas pipeline across Hungary within the South Stream project.
The BCA, which was signed by house chairman of the Gazprom management committee Alexey Miller and president of MFB Dr. Janos Eros, fixes the terms, formation procedures and operation mechanisms for a joint venture to be set up.
“The relationships between Russia and Hungary in the gas industry date back more than 30 years,” Miller said. “Over this period we have established good partnership relations with a huge potential for further development. Today we are making another step forward to fulfill this potential to the maximum extent possible.”
Miller believes that both Hungary will be able partners in the scheme.
“Over the past year Russia and Hungary have performed a big scope of preparatory work aimed at the South Stream project execution. We are confident that Hungary will play an important role in this project and its participation in the gas pipeline construction will be a guarantee of success,” he said.
MFB is a specialised financial institution whose remit includes investing in major projects with large companies to further Hungarian economic development.
Gazprom is the world’s largest gas company focused on geological exploration, production, transmission, storage, processing and marketing of gas and other hydrocarbons. Russia owns a 50.002 per cent controlling stake in Gazprom.The South Stream project is an attempt by Gazprom to explore the possibility of constructing a gas pipeline across the Black Sea to South European and Central European countries.
The BCA was signed at the Russian government reception house in the presence of the Prime Minister Vladimir Putin.
Number crunch
1975 – The year Russian natural gas started arriving in Hungary. In 2008 Gazprom export supplied around 8.9 billion cubic meters of gas to Hungary.
70 – The percentage of total gas imports Gazprom Gazprom provides around 70 per cent of Hungary’s total gas imports. Additionally, Russian gas is being transited via Hungary to Serbia, Montenegro and Bosnia.
31 billion – The cubic metres of capacity the South Stream design accounts for
