Hungary Signs Deal to Purchase 4.2 bcm From Russia 

Hungary Signs Deal to Purchase 4.2 bcm From Russia 
Local workers control a gas valve at the FGSZ Natural Gas Transmission Closed Company Limited, in Vecses, some 20 kms from Budapest on January 14, 2009. EU leaders kept up pressure today on Russia and Ukraine to resolve their gas dispute after an attempt to resume transit supply failed to deliver gas to European consumers. Hungary’s daily gas consumption amounts to 64 million cubic metres, made up of less than 50 million cubic metres received from the Hungarian storage units, more than eight million cubic metres flowing in from Austria, around eight million cubic metres from the country’s own gas fields anf more than eight million cubic meters are sent into the Serbian and Bosnian networks. AFP / ATTILA KISBENEDEK (Photo credit should read ATTILA KISBENEDEK/AFP/Getty Images)

Hungary has signed a year agreement with Russia’s Gazprom for 4.2 billion cubic meters (bcm) of gas from the period of October 2020 to October 2021, according to Neftegaz.

Despite having just penned this one-year deal, Hungarian Foreign Minister, Péter Szijjártó, has planned next Autumn to sign three five-year deals with an option to cancel at the end of each five-year period. 

Speaking about the future long-term contracts, Szijjártó said: “This would secure long-term supplies for us and it would also enable us to renegotiate or possibly quit the agreement in case better opportunities arise and the international energy market changes.”

Hungary will buy an additional 2 bcm of gas to fill storage facilities this summer, with the transports already in action.

In 2019, Gazprom exported an estimated 9.3 bcm of gas to Hungary which represents a 22% increase compared with the total gas supplies to Hungary recorded in 2018. In 2018, Gazprom supplied to Hungary 7.6 bcm.

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