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MOL may join BP’s SEEP gas pipeline project

15 May 2012 08:44 (UTC +04:00)

The paper said MOL, together with its gas pipeline operator FGSZ, was examining how gas could be transported using existing pipelines towards central and southern European states.

The paper cited Toby Odone, a spokesman for BP.

"MOL Group’s natural gas transmission company FGSZ, as always, is investigating all viable gas pipeline projects that have business rational and contributes to energy supply diversification of Europe," MOL said.

SEEP would mainly use existing infrastructure to pump Azeri gas through southeastern Europe, including Hungary, into western Europe.

MOL chairman and chief executive Zsolt Hernadi said last month the company was ready to sell its stake in the rival Nabucco gas pipeline consortium if necessary, as it had serious concerns over the project.

MOL has voiced doubts over Nabucco several times since 2010 due to the project’s uncertain costs and gas supply sources and concerns over its structure and management.

MOL had also announced it would not finance the 2012 budget of NIC, the company that will deliver Nabucco.

The 4,000 km, 31 billion cubic meter (bcm) capacity Nabucco pipeline, a pet project of the European Union as it aims to reduce dependence on Russian gas supplies, has so far failed to sign any gas supply deals.

The Nabucco consortium includes Austrian group OMV German utility RWE, MOL, Turkish firm Botas, BEH from Bulgaria and Romanian company Transgaz.

The EU receives around a third of its gas from Russia, and in parts of central and eastern Europe the reliance is even higher.