The designer ofthe Russian-backed South Stream gas pipeline's Hungarian section towards Baumgarten in Austria willbeselected before late October, Gazprom said in a statement on September 22.
Gazprom CEO met with Hungarian Prime Minister Viktor Orban in Budapest.
“The talks were focused onthe issues ofreliable and uninterrupted gas supplies inthe coming winter period. The parties paid special attention tothe implementation ofthe South Streamproject and noted that it was progressing toschedule,” Gazprom said in a statement.
“Atpresent, abidding procedure isunderway inHungary for selecting acontractor tocarry out design & survey activities, spatial planning and environmental impact assessment (EIA) for South Stream’s Hungarian section towards Baumgarten inAustria. The designer will beselected before the end ofOctober 2014. Hungary will receive first gas via the gas pipeline inearly 2017,” Gazprom said.
Orban has repeatedly voiced his support for the South Stream pipeline, saying his country has no other gas alternative.
South Stream inHungaryisconstructed onthe basis of an intergovernmental agreement between Russia and Hungary. The gas pipeline was granted the status ofanational significance project inthe country.
South Stream Hungary, joint project company established onapar byGazprom and MVM isconstructing South Stream inHungary. In2013 Gazprom and MVM approved the Action Plan regarding the implementation ofthe South Stream project inHungary until 2017.
OnApril 29, 2014 Gazprom and OMVsignedthe Memorandum ofIntent toconstruct the Austrian section ofSouth Stream with anannual capacity ofupto32billion cubic metres and the end point inBaumgarten.
In2013six billion cubic metres ofRussian natural gas were supplied toHungary.
Last week, the European Parliament passed a resolution calling on EU member states to cancel theirSouth Stream contractsas part of a punitive measure designed in response to Russia’s involvement in the Ukrainian crisis.
On September 19, Russian Energy Minister Alexander Novak said Russia expects to discuss South Stream with EU Energy CommissionerGunther Oettinger in the upcoming trilateral talks.
The Commission has warned Gazprom and EU member states that South Stream violates the bloc’s Third Energy Package, which stipulates that pipelines in the EU cannot belong to natural gas extractors.
http://www.neurope.eu/article/gazprom-pushes-south-stream-hungary