Hungarian Provider and Gazprom Sign up for South Stream

Gazprom and Hungary have concluded agreement for construction of part of the South Stream gas pipeline in the central European country.

Alexander Medvedev of Gazprom shook hands on the deal with Csaba Baji, chairman of MVM, Hungary’s largest energy provider. The joint venture is known as South Stream Hungary Zrt.

The pipeline section, which will be 229 kms long, has been granted status of a national significance project in Hungary. 

Mr Medvedev described the South Stream project as “crucial” in the new architecture of European energy security. “Such a system is able to ensure uninterrupted gas supplies and provide Hungary with long-term benefits and stability,” he said in Budapest. The project was a significant step towards transforming MVM into an integrated national energy group, Mr Baji commented.

Earlier this year Hungary’s state-run bank, MFB, transferred its 50% stake in South Stream to MVM.

It's planned that South Stream will carry up to 2.2 trillion cubic feet (tcm) of natural gas to Europe each year, especially southern countries.