South Stream May Bypass Hungary, Croatian Daily Reports
- 24 Aug 2012 9:00 AM
Preparations for the Hungarian section of the Russian-backed South Stream gas pipeline are on track and a decision can be made by the end of the year, the Development Ministry announced yesterday. Croatian daily Jutarnji List reported earlier this week that the pipeline might bypass Hungary and go through Croatia instead on its way to Austria.
Russian energy giant Gazprom is examining several route options, but the existing gas transit and storage facilities and the ongoing and planned investments give Hungary an advantage, the ministry said, adding that the two parties are in continuous consultation.
“This is more of a bluff, part of a political game,” according to Miklós Heged s, head of energy research at economic institute GKI.
As Gazprom plans to extend the pipeline to Vienna, it would not be practical to bypass Hungary, he added.
Hungary is not necessarily interested in joining the South Stream project if the EU-backed Nabucco pipeline is completed by 2020, as the latter would be able to cover Hungary’s needs, Heged s remarked.
He said financing the South Stream investments from loans may not be a good idea under the current circumstances.
Gazprom confirmed that it has held talks with Croatia on possible alternative routes, but would not comment on reports of bypassing Hungary.
Source: Hungary Around the Clock
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