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KEG plans Ft 3.5 bln LPG storage facility

Central European Gas Terminal Rt (KEG) plans to build a Ft 3.5 billion underground storage facility for liquid petroleum gas (LPG), managing director Jozsef Steiner said.
The facility, to have capacity of 4,000 cubic meters of LPG, will be built in Dunaalmas (northwestern Hungary) at an equal distance from the two sources of delivery - Rotterdam and the Romanian port of Constanta.

The storage facility is a temporary measure during the construction of a 120,000-cubic-metre storage facility. The larger storage facility will cost Ft 9.6 billion at 2003 prices and is scheduled to be completed by 2007, Mr Steiner said.

KEG is in talks on setting up a project company for the development. KEG plans to issue Ft 200 million worth of bonds to help finance the construction of the temporary storage facility.

(BBJ 12.i.04)

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