16 Jun

Hungarian Gas Trade Ltd, a subsidiary of state-owned MVM Hungarian Electricity Ltd. (MVM Zrt.) has successfully booked LNG capacity from the Krk LNG Terminal in Croatia. The contract is for 1 billion cubic meters (bcm) annually, over a period of almost seven years. Together with the booking of another Hungarian-owned company, MET (overall 1.3 bcm for the next three years), Hungary has become the principal user of LNG capacity at Krk. The Hungarian contracts ensure the long term economic viability of the Krk LNG terminal that is due to start its operation on January 1, 2021, becoming the first operational LNG terminal in Central and Southeast Europe.

Hungary, for the first time, is to buy gas from a dedicated LNG source, using a new delivery route and ensuring long term source diversification. The contracts cover roughly a fifth of Hungary’s energy import needs. These developments are in line with the U.S. energy strategy aimed at assisting European energy independence through supporting connectivity and providing alternative sources.