Electricity, heat and transportation fuels are essential needs in a modern economy and are indispensable to population welfare. However, there is a significant knock-on effect that is associated with supply security. Failure to supply would cause economic and social damage of an order of magnitude greater than the value of fuel products not consumed during such a crisis. We therefore consider supply security to be our primary responsibility.
Recently, supply security issues have shaped public thinking more than ever, because society and the economy today rely much more on transportation and energy than in the past. This dependency becomes apparent when supply sources are tight or there are problems in the transportation route. As a major energy supplier, MOL Group is committed to fully maintaining operating conditions necessary to ensure supply security. MOL Group has made significant investments in the development of its refineries and logistic assets. These developments enable MOL to deliver transportation and heating fuels to its customers within a short period of time after their orders, even in the peak seasons. The company takes special care for the timely supply of public transportation companies and institutions like hospitals, schools etc. Fostering good business relationships with our partners also helps build a supply security culture.
Security of supply has utmost importance in the case of natural gas, where dominant transportation is by pipelines. As a consequence, users of natural gas may not have the freedom to choose from among supply sources and in the majority of cases, they do not have the possibility to use alternative energy, either. An important element of the security of gas supply is the feasible diversification of sources and transportation routes. Given the requisite number of natural gas supply sources, FGSZ Ltd., MOL’s 100 per cent daughter company is ready to participate in major international pipeline projects that will significantly contribute to long-term diversified European gas supplies.
Accordingly, in 2017 FGSZ Ltd. and Romanian counterpart TRANSGAZ jointly conducted a binding open season procedure to deliver up to 4.4 bcma Black Sea gas - entering the Hungarian grid via the Romania - Hungary interconnector - westwards via the existing infrastructure as of 2022. The project Hungary - Slovakia - Austria aiming to assure such delivery towards Slovakia and via Slovakia to Austria, Czech Republic or Poland is closely followed by FGSZ Zrt. The long term capacity allocation procedure is foreseen to be run in Q3 2018. For the time being the transmission grids of Hungary and Slovenia are not connected, however, Plinovodi (Slovenian TSO), SNAM (Italian TSO) and FGSZ jointly introduced the "Bidirectional gas route Italy-Slovenia-Hungary" concept to the market in early April 2018. The presented project aims specifically to strengthen bidirectional flows between Italy and Slovenia interconnection point as well as to create a new connection between Slovenia and Hungary, with bidirectional flows up to more than 2 bcma by 2023 the earliest. The projects form a new route in the priority Corridor "NSI East". Once this connection is created Hungary will be interconnected with each adjacent transmission system operator of the region, increasing to a great extent regional gas security of supply.
Pipelines inter-connecting Hungary with the neighbouring countries can significantly reduce the risk in security of supply, as the supply sources can be diversified. Furthermore, competition in the gas market would also be enhanced, as an additional benefit for the consumers.
For further information, please visit the webpage of FGSZ Ltd.