Romania Says Gas Link with Hungary on Track To Become Operational on Jan 1, 2010

The gas transmission system operators of Hungary and Romania, FGSZ Ltd. and Transgaz, concluded a Joint Development Agreement to build an interconnection between Arad in Romania and Szeged in Hungary on July 1. The European Commission has said the interconnection will contribute to the development of the market in the eastern part of the European Union, bring possible diversification of routes and supplies and therefore will increase security of supply in Romania and possibly in Bulgaria, which is fully in line with the EU's energy policy.

"The project we first discussed in 2005 [...] has advanced and is close to finalisation," the Romanian government's press office quoted Prime Minister Calin Popescu Tariceanu as telling a joint news conference with his Hungarian counterpart.

No informaton about the cost of the project was immediately available. The pipeline will have a design capacity of 4.4 billion cubic metres of gas per year, Transgaz said earlier.

Initially, the interconnection will make it possible to transport natural gas from Hungary to Romania. At a later stage two-way transportation of natural gas may be considered.

The pipeline will be 109 kilometres long, of which 62 kilometres on Romanian territory. Almost 37 kilometres of the Romanian section have already been built, Tariceanu said.

Romania joined the European Union in 2007, two and a half years after Hungary.