Hungary's MOL brings emergency gas storage online

* Hungary's MOL completes 1.9 bln cubic metre gas reservoir

* 1.2 bln cubic metre to be used if Russian supply disrupted

* Total cost 150 bln forints, paid by MOL and junior partner

By Marton Dunai

ALGYO, Hungary, Oct 1 (Reuters) - Hungarian oil and gas group MOL MOLB.BU has completed and begun to fill an emergency gas storage facility, which will supply natural gas in case of a disruption in gas shipments, MOL said on Thursday.

The underground storage facility, converted from the mostly depleted Szoreg 1 gas reservoir, has a 1.9 billion cubic metre capacity, of which 1.2 billion will be used for emergency backup and another 700 million for commercial purposes.

The emergency storage is enough to supply Hungarian households and municipal consumers with natural gas for 45 days, at a peak capacity of 20 million cubic metres per day.

"Trial runs have been successful, so we will proceed to fill the storage facility on schedule," MOL said in a statement. "We will have the necessary amount of gas by the end of the year."

The facility cost 150 billion forints ($815.7 million), and is a joint venture between MOL, which owns 72.5 percent of the project, and the Hungarian Hydrocarbon Stockpiling Association, which has 27.5 percent.

The European Bank for Reconstruction and Development gave a 200 million euro loan to help construct the facility.

Prime Minister Gordon Bajnai, who attended an opening ceremony in Algyo, in the southeast of Hungary, said the facility was an important safeguard against supply risks stemming from political tensions between Russia, which supplies about 80 percent of Hungary's gas, and Ukraine, which is a transit country for Russian gas.

Twice in the last four years, political tensions between Russia and Ukraine have lead to disruptions in gas supply.

ENERGY SECURITY IS KEY

Bajnai said energy supply security was a top aim of his government and efforts were being made to explore all potential avenues for securing gas, as well as the emergency storage.

He said getting gas via the proposed Nabucco pipeline was the number one priority for the future. The number two priority was to get liquified natural gas through Croatia's marine terminal and the third was taking part in the Russian-led South Stream project.

U.S.-backed Nabucco plans to come online in late 2014 and initially supply gas from Iraq and expects to transport 8 billion cubic metres of gas in 2015, its first full year of operation. [ID:nL1538099].

Bajnai reiterated the Hungarian government's support for MOL, which he called a "national treasure," and said its independence was of strategic importance to the country.

"Let me send the message that MOL's independence and the execution of its strategy is as important to Hungary as having alternative supply of gas," Bajnai said.

Russia's Surgutneftegaz (SNGS.MM) bought a 21 percent stake in MOL earlier this year and sought further cooperation, but MOL said it regarded it as a hostile takeover attempt.

(Editing by Keiron Henderson)