The HUSKAT project may revive Hungary-Slovakia gas supply route. It fights against Austrian competitor
Slovak-Hungarian transit gas pipeline was launched in 2015. Although the gas connection helped to increase market liquidity in our region, its technical and capacity possibilities are not utilized at all. This could change the HUSKAT project that would bring gas from Black sea region to Slovakia and Austria.
In 2017 Eustream with partner TSOs Magyar Gáz Tranzit (MGT) a Gas Connect Austria received positive market demand for incremental capacities. Subsequently they negotiated about the future allocation method. The decision was made to use alternative allocation procedure instead of traditional auctions. The second round of bidding held in October 2018 was declared successful by participating TSOs. Transmission capacities at Hungarian-Slovak border were fully book for 7 year period and partly for the next years, too.
In accordance with the rules of alternative allocation procedure, some of the capacity owners decided to use step back right and pulled out their capacities. As a result, the third round of bidding for capacities is now open up until April 17. Previously unsuccessful shippers may submit new bids for the remaining capacity. The results should be published on 19th April 2019.
The result of the third bid submission window could be one of the crucial factors for the future of HUSKAT pipeline project. However, Austria would prefer direct connector with Hungary via HUAT project. Hungary on the other hand chose to progress with HUSKAT route on the basis of cost efficiency and market demand. Gas Connect Austria opposed the decision with a complaint sent to the Agency for the Cooperation of Energy Regulators. ACER decided that economic test on the Hungarian-Austrian border under the incremental capacity project must be conducted.
You may find more information about the HUSKAT and other capacity projects in this article (in Slovak).