MVM’s long-term strategy unaffected by scrapped South Stream plan
Budapest, December 2 (MTI) – Russia’s decision to scrap plans to build the South Stream pipeline will not affect the long-term strategy of the state-owned Hungarian Electricity Works (MVM), Gyorgy Harmati, the company’s strategy chief, said at a conference on Tuesday.
Harmati conceded that the pipeline would have supported the direct utilisation of Hungary’s gas storage facilities, noting that Gazprom already stores some of its gas in Hungary.
MVM is the equal partner in a joint venture with Russia’s Gazprom established to build the stretch of the pipeline that would have passed through Hungary.
The JV, called South Stream Hungary, had total assets of 3.9 billion forints at the end of 2013, public records show. But MVM decided to raise capital in the company by 5 billion forints in autumn of this year.
The South Stream pipeline was to deliver Russian gas to Europe via the Black Sea, bypassing Ukraine. From 2016, the pipeline was set to deliver about 30 billion cubic metres of gas a year across Hungary.
Harmati told participants of the conference hosted by daily Napi Gazdasag that Hungary had taken part in several international talks concerning energy security. Speaking of AGRI gas pipeline project — with Azerbaijan, Georgia and Romania as participating countries — he said that the feasibility study was set to be presented in Bucharest this week.
Earlier in the day, Foreign Minister Peter Szijjarto quoted Azerbaijan as a possible source of gas delivery, at a meeting of the NATO member states in Brussels.
Source: http://mtva.hu/hu/hungary-matters
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