Hungary passes law to allow building of S. Stream

The European Commission has asked Hungary to explain a new law passed in order to speed up construction of pipelines "such as South Stream."

Izvor: seebiz.net

Thursday, 06.11.2014.

11:28

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Hungary passes law to allow building of S. Stream

The commission warned earlier that the pipeline could violate EU rules, including because of plans to allow monopoly to Gazprom.

The legislation that the Hungarian parliament passed on Monday, with the support of Prime Minister Viktor Orban, will allow that country to build pipelines without operational permits.

A spokesperson for the EC energy policy department said: "The commission understood that the planned change of legislation was proposed in the context of ensuring the construction of the South Stream pipeline."

EU does not ban member-countries from issuing special permits to build and manage pipelines, but those "must be based on objective and non-discriminatory criteria that is published and transparent," the spokesperson was quoted as saying.

The new Hungarian law "does not explain the criteria under which companies might receive such permits," said the same source.

Hungarian gas company MVM President Csaba Baji recently said that works to build 229 kilometers of South Stream through his country "could start in six months' time."

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