"In the longer term, we can, and should, think about alternatives," Attila Szaniszlo, procurement director of gas distribution monopoly MOL Foldgazellato told reporters Friday.
Hungary currently imports 80% of its annual 14 bln cubic meter natural gas needs, including 70% imported from Russia and delivered via high-pressure pipelines crossing Ukraine. The vulnerability of Hungary's position was highlighted this week when a gas pricing dispute between Russia and Ukraine raised the prospect of a complete halt to gas transit deliveries to Hungary and the rest of Europe if no agreement is reached by the two sides.
Pointing to possibilities of diversification, Szaniszlo mentioned the planned EUR 5 bln Nabucco pipeline project, which would enable the flow of Caspian and Middle-Eastern oil and gas through Turkey to central Europe, including Hungary. Alternatively, building a 1.2 billion cubic meter strategic gas reserve storage facility in Hungary would cost HUF 130-150 bln (EUR 500–600 mln).
Another concept that has been floated is the construction of an LNG (Liquefied Natural Gas) port and terminal on Croatia's Krk peninsula, said Szaniszlo. While these are all expensive options, and Russian gas imports are still cheaper than other import sources, MOL believes that lessening Hungary's reliance on Russian gas is worth considering.
NAPI Online