In a bid to reduce dependence on foreign energy, Emfesz, a Hungarian trader dealing specifically with natural gas, is reportedly set to construct a $2.05 billion power station in the eastern region of Hungary, which is expected to provide a significant amount of the country's electricity needs.

<p>According to Hungarian business weekly BBJ, Emfesz will begin the construction of the 800MW gas-fired plant in 2011 and it will be expandable to 2,400MW. <br /><br />With the exception of Italy, Hungary is most reliable on imported power compared to other countries in the European Union. Previous stoppages in oil and natural gas flows from Russia to Europe have caused disturbances to the nation&#0039;s supplies. The new station will provide a continuous operation and stabilize supply. <br /><br />According to data from the International Energy Agency, cited in financial journal Portfolio, Hungary produced 33,708GWh of electricity in 2004 and imported an additional 10,524GWh to meet demand. It has been predicted that total power use in Hungary will increase to as much as 56,000GWh by 2020. <br /><br />Funding for the construction is expected to come from bank loans.</p>