• Natural Gas News

    Romania, Hungary Call off Plan to Expand Gas Link

Summary

There is not sufficient demand to justify the expansion.

by: Joseph Murphy

Posted in:

Natural Gas & LNG News, Europe, Infrastructure, , BRUA Corridor, News By Country, Hungary, Romania

Romania, Hungary Call off Plan to Expand Gas Link

There is not enough demand to justify expanding the flow capacity of a gas link between Romania and Hungary from 1.75bn to 4.4bn m3/yr, Romanian transmission operator Transgaz said on April 14 after conducting a market test.

Transgaz and its Hungarian counterpart FGSZ held a tender for the extra capacity but did not attract enough bids. The expansion project will therefore not go ahead. It was set to serve as the second phase of the Brua project, which aims to develop a pipeline from Bulgaria through Romania and Hungary to Austria.

The second phase entailed building a pipeline between Recas and Horia in western Romania and the upgrading of compressor stations. Its aim was to pump gas from fields in the Romanian Black Sea, but these projects have struggled to move forward due to changes in Romanian legislation. A final investment decision for Brua's first phase was taken in 2016 and construction work is underway.