June 21 (SeeNews) - Croatia and Hungary signed a memorandum of understanding (MoU) on a common approach towards the construction of a gas interconnection between the two countries, Croatia's energy ministry said on Wednesday.
The memorandum is an important step forward in regional cooperation and towards providing a safer, more affordable and sustainable energy source for the whole of Europe, the ministry said in a statement.
The MoU foresees the establishment of bi-directional gas transmission in three phases. During the first phase, a short-term measure will allow for an interruptible physical return using the Hungarian's compressor station. In the second phase, by the end of March 2019, the first compressor station in Croatia will be built, while additional infrastructure to increase capacity will be built in the third phase.
The third phase will only be made possible if new sources of gas are secured, through projects such as Croatia's planned LNG terminal or the Ionian Adriatic Pipeline (IAP) development.
In 2015, Bulgaria, Romania, Hungary and Slovakia signed a declaration in support of plans to interconnect their gas transmission grids and increase bi-directional capacity as part of their efforts to diversify gas supply sources and routes.