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Hungarian firm could join BP pipeline project

14th May 2012

Hungarian energy company assesses viability of joining BP-run pipelines project, SEEP

Hungarian company mulls joining project which feeds gas to central and southern European states

Hungarian oil and gas group MOL is examining the possibility of joining the South East European Pipeline (SEEP), a natural gas pipeline project led by BP, Hungarian daily newspaper Nepszabadsag reported on Monday.

The paper said that the company, together with MOL's gas pipeline operator FGSZ, was examining how gas could be transported using existing gas pipelines towards central and southern European states.

The SEEP project would mainly use existing gas infrastructure to pump Azeri gas through southeastern Europe, including Hungary, into western Europe, Reuters reported.

MOL's Chairman-CEO Zsolt Hernadi said last month that the company was ready to sell its stake in the rival Nabucco gas pipeline consortium if necessary, as it had serious concerns over the project.

MOL has voiced doubts over Nabucco several times since 2010 due to the project's uncertain costs and gas supply sources and concerns over its structure and management.

MOL had also announced it would not finance the 2012 budget of NIC, the company that will deliver Nabucco.

The 4,000 km, 31 billion cubic meter (bcm) capacity Nabucco pipeline, a pet project of the European Union as it aims to reduce dependence on Russian gas supplies, has so far failed to sign any gas supply deals.

The Nabucco consortium includes Austria's OMV Germany's RWE, MOL, Turkey's Botas, BEH of Bulgaria and Romania's Transgaz.

The EU receives around a third of its gas from Russia, and in parts of central and eastern Europe the reliance is even higher.


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