Transgaz, FGSZ sign agreement on Arad-Szeged gas pipeline

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Transgaz company based in Medias (central Romania) and Hungarian company FGSZ signed in Siofok, Hungary on August 18 an agreement on reserving the long-term riginal minimum contracted capacity of the natural gas pipeline running from Szeged, Hungary to the western Romanian city of Arad, Transgaz announced in a press release.
 
The two companies signed in early July an agreement on linking the Romanian and Hungarian natural gas transport systems by building the Arad-Szeged pipeline.
The pipeline will boost the safety of natural gas supplies to the region by setting up a connection that does not depend on a third country.
 
According to the agreement signed by Transgaz Medias and FGSZ on July 1, each signatory will bear the costs and spending incurred by the design, construction, operation and maintenance of the pipeline on its own territory. The Romanian stretch of the pipeline will be 62-km long, running from the linking point of Horia (near Arad) to Nadlac checkpoint. A stretch of 36.7 km has already been built on the Romanian territory.
 
The maximum transport capacity of the pipeline is 4.4 billion cubic meters a year, meaning an average flow of 500,000 cubic meters per hour. Romania should complete its part of the pipeline and commission it on Jan. 1, 2010, i.e. 18 months since the agreement was signed.
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