A six-year purchase contract was concluded on September 4, 2020 with Shell for 250 million cubic metres of natural gas annually, between 2021 and 2027. This is the first long-term liquid natural gas (LNG) purchase agreement with a Western energy company in Hungary’s history. The contract with Shell has been concluded at such a competitive price that will enable the protection of the results and achievements of Hungary’s state-ordered public utility charge cut.
Earlier MVM Hungarian Electricity Works Zrt.’s natural gas trading company has tied down an annual capacity of one billion cubic metres for the period of 2021 to 2027 at the LNG terminal in Krk, Croatia. Accordingly, all requirements for the marketing of LNG from the Krk terminal have been met. Starting from next year ten percent of Hungary’s natural gas requirements will arrive through the Krk LNG terminal.
Natural gas plays the most important role in Hungary’s energy supply, and Hungary has decided increase the role of LNG in it. Due to the interconnectors that Hungary constructed, the natural gas networks of six out of seven of the country’s neighbours are now connected to that of Hungary. Dependable relations have been developed with both eastern and western energy companies, and this cooperation will be maintained in future, as it is in Hungary’s interests for natural gas to arrive in the country from as many sources and routes as many routes as possible. To know more about the deal and the overall energy policy supporting the decision, please visit: https://www.kormany.hu/en/ministry-of-foreign-affairs-and-trade/news/historic-gas-purchasing-agreement-concluded-with-shell