“The largest Hungarian agreement” for the purchase of gas from the west. A 10-year contract with Shell was signed

Hungary has signed a 10-year contract with the Shell group for gas supplies, “the largest” with a western enterprise so far-said the head of Hungarian diplomacy Peter Szijjarto on Tuesday. The new supplier is to help Hungary prepare for the EU ban on fossil fuels from Russia from 2028.

“It has just been signed calculated for the longest date and the largest Hungarian agreement for the supply of Western gas,” said Szijjarto on the website X. He added that real diversification means “adding new sources, not cutting off the existing ones.”

The new contract provides for the supply of 2 billion cubic meters of gas in 2026–2036. The raw material will go to Hungary through the territory of Czech and Germany – said Szijjarto the same day in an interview with the Bloomberg agency.

The agreement with Shell is one of the first steps of Hungary towards limiting dependence on Russian gas in connection with the upcoming EU ban on fossil fuels from Russia, which is to apply from January 1, 2028.

The government in Budapest is opposed to EU plans, arguing that cutting off cheap raw materials from Russia is a threat to the country's energy security. Hungary also appealed to Brussels for compensation for costs related to the diversification of deliveries.

Currently, Hungary has a contract with Russian Gazprom in force until 2036 for the supply of 4.5 billion cubic meters of gas per year.

Szijjarto admitted that transmission infrastructure from other directions still does not provide sufficient possibilities to completely cover the needs of the country without import from Russia. “We also negotiate with other Western suppliers, but we are not yet at the stage of announcement of subsequent contracts,” he added.

The head of Hungarian diplomacy also counts on reducing gas demand thanks to the development of nuclear energy. The country plans to double production by building two new reactors, which – according to Szijjarto – are to be connected to the network in the first half of the next decade. In his opinion, it will satisfy 70 percent. Electricity demand, and gas import will be reduced by half. (PAP)

MWS/ AP/