Bulgaria, Romania, Hungary and Austria pledge to go ahead with BRUA gas project

Bulgaria, Romania, Hungary and Austria pledge to go ahead with BRUA gas project
By Carmen Simion in Bucharest September 28, 2017

The four original participants in the BRUA gas pipeline — Bulgaria, Romania, Bulgaria, Hungary and Austria — confirmed their commitment to the project at a meeting on September 28. 

The move gets the project back on track after Hungarian transmission system operator FGSZ abandoned plans to develop its interconnector with Austria back in July, throwing the future of BRUA into doubt. 

Now, however, a memorandum of understanding signed in Bucharest stated that the project would be carried out in all four countries involved, Agerpres news agency reported.

The BRUA pipeline project is of high importance for the participating countries, as well as for the whole region as it will increase energy security in Central and Eastern Europe and ease reliance on Russian gas.

In July, however, FGSZ said it could not conduct the open season procedure for the allocation of the capacities related to the Romania-Hungary-Austria gas transmission corridor because of economical efficiency issues, Romanian gas transmission operator Transgaz announced at that time. Instead, the Hungarian party suggested conducting the binding open season procedure only for the Romania-Hungary interconnection point, while the 4.4bn cubic metres (cm) of gas coming from Romania each year would be distributed from Hungary to Croatia, Serbia, Slovakia or Ukraine.

“As part of the memorandum signed today, all countries agreed and it has clearly decided that it will be a reverse flow interconnection in all four states,” Romanian Energy Minister Toma Petcu said. 

“It has also decided it will be a reverse flow interconnection between Hungary and Austria and Austria has pledged that will complete the first phase of the project on time, as well as Hungary and Bulgaria, and for the second phase all four states pledged to carry out the project and will complete it within the agreed terms.” 

EC Commissioner for Climate Action and Energy Miguel Arias Canete said the BRUA project is important to the EU and should materialise. 

The BRUA project was developed in the context of the need to diversify European countries' gas supply sources. The project will ensure bi-directional gas transmission capacities of 1.5bn cm per year to Bulgaria and will develop new transmission capacities of 1.75bn cm per year (Phase I) and 4.4bn cm per year (Phase II) to Hungary, according to Transgaz.  The Romanian gas transport company is currently implementing Phase I of the project, which benefits from EU financial assistance.

The EC has lent Romania almost €180mn for the first phase of the project, which should be completed by 2020.

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