Release date: 24 June 2009
Promoter – Financial Intermediary
The promoter is a 100% subsidiary company of a leading integrated oil and gas group in Central and Eastern Europe.
Location
Description
The project concerns consists of 206 km of DN800 natural gas transmission pipeline to be constructed between Városföld and the Croatian-Hungarian border, in order to create bi-directional gas transmission between Hungary and Croatia. The project also includes the construction of two compressor stations, a metering station and a short small diameter branch line. The project will further integrate the EU gas market and provide gas transit capacity from Hungary to Croatia, Bosnia Herzegovina and Italy of up to 7.5 Bcm/year, and in reverse mode gas transit capacity from Croatia to Hungary of up to 5.5 Bcm/year.
Objectives
The project is designed as a bi-directional interconnection between the Croatian and Hungarian gas grids and will contribute to the overall integration of the EU gas grids. It will provide new gas supply options to Croatia and Bosnia Herzegovina (Russian gas through Ukraine-Hungary, or Caspian gas in case Nabucco and/or Southstream materialise) but will also allow Hungary to diversify its gas supply by importing LNG imported in Croatia at the planned Krk terminal.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 150 million.
Total cost (Approximate amount)
Estimated at EUR 307 million.
Environmental aspects
The project falls under Annex II of Directive 85/337/EEC and its amendment. Following the submission of preliminary environmental studies the two regional authorities covering the route of the line both required an EIA. The draft EIS have been prepared and submitted to the regional authorities in May 2009. Public consultations are scheduled for June 2009, and the environmental permits are expected for August 2009.
Procurement
The promoter is defined as a contracting entity in the sense of Article 2 of the new Utilities Directive 2004/17/EC. The project will be implemented under a turnkey EPC contract that was tendered in line with requirement of Directive 2004/17/EC. The EIA’s will be assessed in detail during appraisal including compliance with EU environmental legislation.
Status
Signed - 29/11/2010