Gazprom has announced that a feasibility study on the Blue Stream-2 gas pipeline project to link Turkey to the EU, and on underground gas storage in Hungary, will be ready by July. The Russian company, who already transmits gas to Turkey through the Blue Stream pipeline across the Black Sea, is considering the construction of a South-European gas pipeline, or Blue Stream-2, which would use Turkey as a transit point for exports to the EU. Gazprom CEO Alexei Miller and director general of Hungarian oil and gas company MOL, Zsolt Hernadi, have recently discussed progress on the feasibility study for the pipeline project, and storage of natural gas carried out by Sepco, a joint venture of Gazprom and MOL. The companies signed an agreement on 21 June, 2006, to establish Sepco on a 50-50 shared basis to implement gas projects in Hungary. Around 80% of Hungary's gas supply comes from Gazprom, which sold 8.7bn cum of gas to the country in 2006. The Blue Stream pipeline, which carries Russian gas to Turkey, is the largest Russian-Turkish joint energy project to date. The $ 3.2-bn pipeline transported 5bn cum in 2005, and is expected to carry 16bn cum annually by 2010. The new pipeline is expected to increase capacity by 8bn cum/yr.