Mol will decide in June whether to invest in OMV AG's Nabucco natural gas pipeline or OAO Gazprom's rival Blue Stream project, or both, Nepszabadsag reported without citing anyone. The company is weighing its options in both projects, while the Hungarian government is backing both, according to the newspaper.
Our view: Hungarian PM
is in Moscow today to speak with President Putin on energy issues. The press has already stared speculating that the Blue Stream project will be on agenda again. Though we currently see the news as neutral for MOL, the decision to participate on either of the projects will lead to CAPEX adjustments in the model. We would see it as much more negative if the company decides to go for both projects as it would put too big burden on its financial position.