Approved financial support for WAG Loop 1

During the Cabinet meeting on 6th March 2024, the Federal Government announced financial support for the WAG Loop 1 project. Gas Connect Austria, as the project's responsible trans-mission system operator, welcomes this decision. However, it emphasises that the current tariff system needs to be adjusted to the market conditions significantly worsened by the conflict in Ukraine.

Stefan Wagenhofer and Harald Stindl, both Managing Directors of Gas Connect Austria, stated: "We welcome the financial support from the federal government for the WAG Loop 1 and are pleased that the importance of the project for Austria's energy security is being recognised." The announced support of at least 70 million euros is crucial, considering that the total investment costs are approximately 200 million euros. Gas Connect Austria will repay the support to the government if it is earned back.

The next significant milestones include adjusting the tariff system to current market conditions by E-Control Control to ensure the economic viability and investment capacity of the company. Furthermore, the project will undergo scrutiny from the EU Commission in Brussels regarding compliance with state aid regulations, and the clarification of the project's entire financing.

We are confident that, with the support of politicians, the authorities and E-Control, the next steps can be taken swiftly in the coming months.

In the meantime, we continue to work responsibly and with full commitment on the project implementation, eagerly awaiting the details of the announced funding.


For further information on the WAG Loop 1 project, please refer to the link provided.