The agreement, made during a visit to Budapest by Croatian Prime Minister Jadranka Kosor, was signed by Hungarian National Development Minister Tamas Fellegi and Croatian Minister for the Economy, Labour and Enterprises Djuro Popijac.

Under the agreement, construction of a 210 km section of pipeline will be completed, requiring an investment of approximately $US363 million. Based on an earlier agreement between project investors FGSz Földgázszállító Zrt and Plinacro, 100 km of the pipeline has already been constructed.

The pipeline section to be constructed in Croatia will be 88 km in length, with the remaining length in Hungary.

The new pipeline, which has a planned capacity of 6.5 Bcm/a, is scheduled to become operational in early 2011.