FGSZ agreed to purchase the Slovakian-Hungarian gas interconnector
FGSZ, a member of MOL Group, the owner and operator of the majority of the Hungarian high-pressure gas pipeline network signed an agreement package on the purchase of the business of Magyar Gáz Tranzit Zrt. (MGT) today.
MOL Plc. hereby notifies the market of the following:
FGSZ, a member of MOL Group, the owner and operator of the majority of the Hungarian high-pressure gas pipeline network signed an agreement package on the purchase of the business of Magyar Gáz Tranzit Zrt. (MGT) today. FGSZ agreed to pay a total consideration of HUF 38bn (including the prepayment of the MGT’s loans) to the Hungarian state for the Slovakian-Hungarian natural gas interconnector pipeline system. Closing of the transaction is subject to the fulfilment of certain condition precedents, among others to obtaining the approval of Hungarian Energy and Public Utility Regulatory Authority.
MGT owns and manages the operation and the capacity trade of the 92km long Hungarian-Slovak interconnector gas pipeline. MGT was established by the Hungarian State on 1 January 2012 and started commercial operations on 1 July 2015.
The transaction is expected to deliver operational synergies as the single gas transmission system operator (TSO) model will be reestablished in Hungary and it also increases the security of natural gas supply in the region. Furthermore, the transaction also improves our position in cross-border gas flows in the region.
FGSZ Ltd. is the largest transmission system operator in Hungary, providing security of supply and interoperability of the natural gas system of the region under regulated market conditions. The company operates on a 5,782 km long transmission line system, 25 supply and nearly 400 gas outlets, 3 regional centers and 6 compressor stations.