On the initiative of Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó, an expert-level working group was convened in the Ministry of Foreign Affairs and Trade on 25 June as a follow-up to the 7 April 2015 meeting of Ministers of Greece, the Former Yugoslav Republic of Macedonia, Serbia and Turkey. A representative of the European Commission also attended the session as an observer.

The convocation of the working group marked the formal start of expert-level work on the Tesla project that aims to examine the feasibility of creating a gas pipeline connection between Turkey and Central and Southeast Europe, to clarify technical, financial, regulatory and legal questions, and to prepare the pre-feasibility study of the project.

Hungary as the host country made a detailed presentation on the main parameters of the Tesla project, the milestones and operative schedule leading to the 2019 start of commercial operation of the pipeline, and also introduced the draft Memorandum of Understanding (MoU) to be signed by the natural gas Transmission System Operators of the Participating States.

The Expert Working Group agreed to jointly finalise the MoU and to make it ready for signature at a follow-up ministerial meeting in the Autumn of 2015. The parties welcomed that the Tesla project is now included in the Ten Year Network Development Plan of the European Network of Transmission System Operators for Gas (ENTSOG). It was agreed that the parties will jointly work towards Tesla obtaining the status of Project of Common Interest in the European Union, a precondition for Tesla being eligible for funding from EU financial sources.

Tesla aims to connect the Central and Southeast European consumption hub with the diversified Turkish market. Tesla will comply with the EU’s Third Energy Package and as a pipeline with bidirectional flow capability will significantly contribute to the energy security of the Central and Southeast European region as well as to that of Europe as a whole. As put forward by the 7 April Ministerial Joint Declaration, Participating States are ready “to welcome in cooperative spirit other willing countries of the region to participate in these efforts”.

Central and Southeast Europe is still vulnerable to eventual disruptions in the supply of natural gas. Hungary examines all options to diversify the routes and sources of supply. Regional gas market integration and the development of the “capillary” system of bidirectional interconnectors are important for Hungary. Nevertheless, we are still convinced that a large capacity pipeline is necessary for the supply of the region. Beside its supply security relevance, we believe that Tesla, an infrastructure project across the territories of a number of countries, has significant added value in terms of the stabilization and economic development of the wider region, as well as concerning the integration process of the Western Balkans.

(Ministry of Foregin Affairs and Trade)