The proposed approximately 115 km pipeline will connect the high-pressure system located at Veľké Zlievce, Slovakia, with the Hungarian transmission network near the village of Vecsés in the suburbs of Budapest.

The project is planned to diversify gas transportation routes and significantly contribute to European energy security. It is expected that the additional cross-border capacity will also increase gas market liquidity and improve the future security of gas supply for the central European region.

The signing of the Memorandum of Understanding (MoU) represents the companies’ common interest in the successful continuation of the project. The companies agreed on the details of further co-operation and key milestones for the full implementation and financing of the project. In order to guarantee the project proceeds, Országos Villamostávvezeték (OVIT) also signed a Co-operation Agreement with FGSZ.

The project is expected to cost over $US136 million. The European Energy Programme for Recovery is expected to partially support the project with $US41 million of funding. Eustream and OVIT have scheduled the commissioning of the pipeline for 1 January 2015.