BorsodChem reassured us yesterday that it is ruling out CO and hydrogen production being threatened by potential limitations in the Hungarian natural gas supply. The company added that its power station is in the third category of the disconnection order, and that CO and hydrogen production is even safer. This confidence appears to be justified by the fact that there was no limitation in the natural gas supply yesterday (in either the first or second categories), despite the fact that consumption reached 86 million cubic metres versus the system’s maximum capacity of 87.5 million cubic metres. In addition, the government, perceiving the near critical situation, asked three more power stations to switch from natural gas to crude oil on Monday, which could lower gas consumption by up to 9 million cubic metres from today. While this move could cost the budget some HUF 100-200m a day, it almost certainly ensures that potential supply will continue to exceed actual demand. BorsodChem’s share price dipped a mere 0.3% on Monday, recovering from earlier losses. The market’s mood could become more positive on the stock today as investors realise that the government is aware of the gas supply situation in Hungary and that CO and hydrogen production of the company is not threatened at all.