Alexander Medvedev, deputy chairman of Gazprom, and Csaba Baji, CEO of the Hungarian Electricity Works (MVM), announced the Hungarian section of South Stream natural gas pipeline project has been approved by shareholders. The pipeline will supply natural gas from Russia to Europe via a Black Sea route. The Hungarian section, an investment of €600m, will be 229 km long and have an annual capacity of 30bn cubic meters. The section is scheduled to be completed by January 2016. Banks loans will cover 70 percent of the cost, while a joint venture will cover the remaining 30 percent.
Besides Gazprom and MVM, the pipeline project will involve companies in Italy (ENI), France (EDF and Wintershall) and Germany (BASF Group).
