icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Proposed EU pipeline to cut out Russia

Hungarian oil and gas company MOL has called for the merger of at least eight gas transmission companies in central and south-eastern Europe. The new firm would be called the New European Transmission System.

The European Commission has already backed the initiative.

The integrated company top priority would be to get a loan to build the Nabucco gas pipeline bypassing Russia.

Analysts say the proposal for a united pipeline company would be beneficial for European gas consumers.

BrokerCreditService's Maksim Shein says the move is a response to Gazprom's step towards “coordinating gas supplies as well as pricing.”

“It is logical for gas consumers to set up a two-sided consortium: one major producer and gas exporter like Russia, with other major gas exporting countries, and one major consumer, a united European organization,” Shein said.