Hungary's MOL Takes over Slovakia Link

The gas transmission system operator (TSO) subsidiary of Hungarian energy company MOL, FGSZ, will own and operate the 92-km Hungary-Slovakia interconnector and related equipment from October 4, said Slovakia’s TSO Eustream September 30. FGSZ also takes over the operation of the Balassagyarmat interconnection point.

The new arrangement follows FGSZ's takeover of state-owned Magyar Gaz Tranzit (MGT) in late June for forint 38bn ($124mn) including pre-payment of loans. MGT was set up by the government in January 2012 and started operations in mid-2015. The government owns about 25% of MOL.

FGSZ already owns and operates most of the Hungarian high-pressure gas pipeline network and the transaction is expected to deliver operational synergies as the single gas transmission system operator (TSO) model will be re-established. It also increases the security of natural gas supply in the region. Furthermore, the transaction also improves FGSZ’s position in cross-border gas flows in the region. said FGSZ when the deal was announced.

FGSZ is the largest transmission system operator in Hungary, providing security of supply and interoperability of the natural gas system of the region under regulated market conditions. The company operates a 5,782 km long transmission line system with six compressor stations.