Hungary has reached an agreement with Russia’s state-controlled energy giant Gazprom to increase the supply of Russian natural gas via the Turkish Stream pipeline. The deal, which is expected to deliver 6.7 billion cubic metres of gas to Hungary in 2024, signals a significant step in Hungary’s energy strategy amidst ongoing geopolitical tensions in the region.
The announcement was made by Hungary’s Minister of Foreign Affairs, Péter Szijjártó, during a gas forum held in St. Petersburg, Russia. According to Szijjártó, the Hungarian government’s primary responsibility is to ensure long-term energy security at competitive prices. This agreement, he emphasised, is crucial for the stability and affordability of energy supplies in Hungary.
On 10 October, Hungary’s state energy company, MVM, signed a memorandum with Gazprom outlining the terms of the deal. Both parties reaffirmed their commitment to maintaining and potentially increasing the supply of Russian gas. Gazprom stated that the memorandum of understanding would serve as a framework for further negotiations, which could lead to an expansion of the supply agreement in the future.
The Role of Turkish Stream in Hungary’s Energy Security
The Turkish Stream pipeline has become a cornerstone of Hungary’s energy infrastructure, particularly after Szijjártó’s assertion that it has played a critical role in the country’s energy security. The pipeline, which transports Russian gas to Southern Europe via the Black Sea and Turkey, bypasses Ukraine, offering Hungary an alternative route to ensure a steady gas supply.
Szijjártó highlighted that Hungary avoided a potential energy crisis by opting to support the Turkish Stream project, despite external pressures. He noted that the country would have been in a precarious position if it had succumbed to what he described as “friendly and allied pressure” to abandon the pipeline project. With the looming halt of Russian gas transit through Ukraine, which is set to take effect from 1 January, the importance of the Turkish Stream to Hungary has become even more pronounced.
The minister pointed out that Hungary can now import more gas via the Turkish Stream than it did through other routes in the past year, securing up to 20 million cubic metres per day. This development, he said, has significantly enhanced Hungary’s capacity to meet domestic energy demands, protecting the country from potential disruptions in gas supply.
Image source: bruegel.org
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