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Hungary has a 15-year deal with Russian group Gazprom

3 June 2021
Import-Export

Hungarian Foreign Minister Peter Szijjarto signed a 15-year gas supply agreement with Russian group Gazprom on Thursday, which will take effect as soon as the current contract expires in September this year, Reuters reports.

So far, Hungary has relied mainly on Russian natural gas and the Budapest authorities have never signed a long-term supply agreement with any supplier other than the Russian group Gazprom, which is working to expand its presence in Europe by building more new gas pipelines.

In recent years, Hungary has begun to diversify its natural gas imports by opening gas interconnections with most neighboring countries and signing several supply agreements, including one with the Shell Group, which aims to supply liquefied natural gas (LNG) terminal in Croatia, according to Agerpres.

Also, in the next period, a new BalkanStream pipeline is to be inaugurated, an extension on the Bulgarian territory of the Russian TurkStream pipeline, to Serbia and Hungary.

“We will have a new route for the purchase of natural gas … Hungary will not be without natural gas,” Peter Szijjarto said in a video on his Facebook page, adding that the link between Hungary’s border and Serbia will become operational by October.

Szijjarto did not disclose the amount of gas Hungary will import under the new agreement with Gazprom, nor the price, adding that the price formula is “flexible” and the energy companies in the two countries will negotiate the details.

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