Pipeliners

02-09-2007 - Upstream onLine - Russian gas export monopoly Gazprom and Hungarian oil company MOL will complete a feasibility study by July for extending a Russian-Turkish gas pipeline to southern Europe, Gazprom said today. The companies set up a joint venture last year called SEP to oversee the project to extend the Blue Stream pipeline to supply countries such as Austria and Italy via Bulgaria and Hungary. The project also envisages building underground gas storage in Hungary with capacity of up to 10 billion cubic metres. The existing Blue Stream pipeline was built in 2001 and has capacity of about 16 Bcm a year. It has been underused, as Gazprom says Turkey had overestimated its gas needs. Hungary relies on Russian imports for about 80% of its gas needs and as domestic production declines analysts have said imports will increase steadily in coming years. Gazprom supplied 8.7 Bcm of gas to Hungary last year, Reuters reported.