Hungary, which has long been the largest consumer of Russian gas among EU countries, has signed new long-term contracts for energy supplies with Western partners. The state energy company MVM Group has entered into a five-year agreement with American company Chevron for the purchase of 2 billion cubic meters of liquefied natural gas (LNG), marking a significant step in diversifying the country’s energy sources.
This is reported by Finway
“We are interested in procuring energy carriers from as many sources as possible and through as many routes as possible, ensuring the lowest prices,” commented Hungary’s Foreign Minister Peter Szijjarto on the agreement.
Diversification of Supplies and New Contracts
In addition to American LNG, Hungary has agreed to purchase 4 billion cubic meters of gas from the French company Engie for the period from 2028 to 2038. In September, MVM Group also signed a ten-year contract with Shell. Despite this, the country continues to cooperate with Russia based on the existing long-term gas agreement.
Hungary’s Position and Changes in the Oil and Gas Market
Budapest has consistently opposed the EU’s plan to gradually phase out imports of Russian gas by the end of 2027. In November, Hungarian authorities announced that they had received a temporary exemption from US sanctions regarding the purchase of Russian energy resources, but, as clarified by the White House, this exemption will only be valid for one year.
Meanwhile, due to Western sanctions and reduced purchases of Russian Urals oil by India, there is a buildup of tankers carrying this oil off the eastern coast of China. As of December 17, at least five vessels with 3.4 million barrels of Urals oil were idling in the Yellow Sea – a record volume for the last five years in this region. China prefers an alternative grade of oil – eastern ESPO.