Hungary to Buy 51% Stake in Gas Safety Storage Facility -Agency

By Margit Feher

BUDAPEST--Hungary's government has ordered its development minister to begin talks on buying a 51% stake in natural gas safety storage facility MMBF Foldgaztarolo Zrt., which is majority owned by Hungarian oil and gas company MOL Nyrt. (MOL.BU), the state news agency MTI said late Thursday.

The acquisition is aimed at strengthening public ownership in energy management, which the government considers of strategic importance, and to ensure stability in energy supply, the government said in a statement.

Parliament, which is dominated by the governing Fidesz party, amended legislation on national assets on Dec. 17, 2012 that the natural gas safety storage facility may only be publicly owned.

MMBF, Hungary's safety storage facility with a capacity of 1.9 billion cubic meters of natural gas and a daily peak release of 25 million cubic meters, is majority owned by MOL. The Hungarian government holds around a 24.6% stake in MOL.

MMBF's revenue totaled EUR96.8 million ($125.1 million) last year, MTI said.

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