Hungary open to all pipeline options

Published: March 19, 2009 at 10:12 AM

BUDAPEST, Hungary, March 19 (UPI) -- The Hungarian government should consider options beyond the South Stream and Nabucco gas pipelines, the Hungarian energy and transport minister said.

Budapest and Moscow signed a draft agreement last week to build the South Stream gas pipeline to Italy through Hungarian territory.

Hungarian Energy and Transport Minister Csaba Molnar told lawmakers the country needs to maintain its interest in projects besides South Stream and Nabucco, Hungary's MTI news agency reports.

Molnar said Nabucco remains the "No. 1 priority," but added that South Stream is less risky in terms of the political consequences.

Nabucco would bypass Russia completely by bringing gas from the Caspian region to European markets. South Stream would bring gas from Russia, which holds the largest gas reserves in the world.

The minister added that embracing all options was a pragmatic move as Nabucco may be unable to satisfy the energy demands of Europe.

Molnar also said the Hungarian oil company, MOL, would be involved in a deal as part of the South Stream agreement for the construction of storage facilities capable of storing 46 billion cubic feet of natural gas, which would provide Hungary with "extreme energy security."

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