Hungarian government, MOL launch deal for gas storage firm

BUDAPEST, March 22 (Reuters) - Hungary's oil and gas group MOL has signed a letter of intent to sell its 51 percent stake in gas storage company MMBF to the Hungarian government, the company said on Friday.

The government has been tightening control over firms in the energy and other sectors, partly to ensure cuts in household bills which have already helped to boost its opinion poll ratings with about a year to go before elections.

The government announced on Thursday that National Development Minister Zsuzsanna Nemeth has been commissioned to start talks about buying the MOL stake "in the interest of the stability of the country's energy supply."

MMBF's facility near the Southern Hungarian village Algyo holds gas reserves of 1.9 billion cubic meters, which includes Hungary's strategic gas reserves and also gas for commercial usage.

MOL said the property transfer contracts will be signed within 90 days after the necessary asset evaluations.

"This agreement is in line with MOL's ... strategy ... to focus on its core activities," the statement quoted Sandor Fasimon, Chief Operating Officer of MOL Hungary, as saying.

MOL said its remaining 21.46 percent stake in the storage company MMBF would be acquired by the Hydrocarbon Stockpiling Association which held only a minority stake before.

The government signed a "declaration of intent" with E.ON

in November to buy the German utility's Hungarian gas units. That contract is still waiting to be finalised.

(Reporting by Krisztina Than; Editing by Ruth Pitchford)

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Keywords: HUNGARY GAS/MOL