Gazprom’s Headquarters hosted today a working meeting between Alexey Miller, Gazprom’s Management Committee Chairman and Zsolt Hernadi, Executive Chairman –CEO of the MOL Hungarian Oil and Gas Company.

The meeting addressed bilateral cooperation in the gas industry, underscoring that Gazprom was the major gas supplier to Hungary and MOL was highly evaluating the joint business results. Touching upon the outcome of the tenders held to sell off part of MOL’s gas assets, Zsolt Hernadi pointed out that MOL would back Gazprom’s becoming shareholder of MOL’s gas affiliates provided the former achieved an accord with E.ON Ruhrgas - the tender winner.

Z. Hernadi also underscored that the MOL-owned Panrusgaz’s stake sales transaction must be agreed upon with Gazprom.

Simultaneously, the meeting debated new prospects of cooperation between the 2 companies in the oil sector given the Rosneft’s takeover by Gazprom.

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Before 1991, Hungary’s gas industry was controlled by the OKGT National Crude Oil and Gas Trust laying roots for the foundation of MOL – the company dealing with oil and gas exploration, production, transmission, storage, distribution and marketing as well as operation of a 5.2-thousand-km-long gas main network.

First Russian natural gas was delivered to Hungary in 1975. Over the past 29 years, the Hungarian Republic received over 153 bcm of Russian natural gas, boosting the natural gas share in the country’s fuel balance from 27%, in 1980, to 48%, this year.

Russia is the major natural gas supplier to Hungary, channeling some 80% of overall gas deliveries to the country.

Under long-term agreements, roughly 195 bcm of Russian natural gas are planned to be supplied to Hungary before 2015. The agreements stipulate gas deliveries via the 2 directions: via the Beregovo (Ukrainian-Hungarian border) and Baumgarten (Austrian-Hungarian border) import & export terminals.

The agreements are updated on an annual basis and 11.5 bcm/y of gas are planned to de delivered via both directions starting 2011.

This year’s autumn saw a tender held to sell off part of MOL’s gas assets – shareholdings in the MOL-controlled companies including Foldgazellato Rt (WMT – Wholesale, Marketing and Trading), MOL Foldgaztarolo Rt, (MOL Storage), MOL Foldgazszallito Rt, (MOL Transmission) ? Panrusgaz Magyar-Orosz Gazipari Rt (a MOL-Gazexport joint venture).

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