WSJ: European Commission Scrutinizes Hungarian Energy Bill

The European Commission on Tuesday asked Hungary to explain details of new legislation that could advance Russian energy giant OAO Gazprom’s South Stream natural-gas pipeline project, despite Brussels’s move to freeze talks on the project.

Hungary’s Parliament passed a bill Monday significantly loosening regulations on pipeline construction and operation, allowing companies without a license for operating natural-gas transit systems to build a pipeline.

Anna-Kaisa Itkonen, the commission spokeswoman on climate change and energy, said the EU executive body understood that the bill would allow for the construction of the South Stream pipeline. Brussels has sought clarification from Hungarian authorities on the new law to ensure that the selection of companies for building new pipelines is transparent, Ms. Itkonen said.  MORE