USD 76.4667

0

EUR 90.4142

0

BRENT 41.39

-0.68

AI-92 43.36

-0.03

AI-95 47.24

-0.02

AI-98 53.04

-0.03

Diesel 47.74

-0.03

362

Hungary will buy 250 million m3 of LNG per year for 6 years from Royal Dutch Shell

Hungary will buy 250 million m3 of LNG per year for 6 years from Royal Dutch Shell

Budapest, September 11 - Neftegaz.RU. The deal for gas supplies arriving via Croatia's Krk LNG terminal marks the 1st Hungary has signed with a Western company.

Hungary Foreign Affairs Minister Peter Szijjarto was quoted by Reuters as stating: “Hungary signed a long-term gas supply agreement for the first time with a Western company. Hungary will secure 10% of its gas supply from the West, which is a huge step in Hungary’s energy diversification.”

Shell’s Global Executive Vice President Istvan Kapitany said that natural gas could help fulfill the demand for increasing quantities of clean energy, replacing coal or other liquid fuels.

The gas will be delivered through an LNG terminal on the island of Krk in Croatia. Krk terminal is expected to come online in the next few months.

In June this year, Hungary’s state-owned firm MVM announced plans to purchase up to 1 billion cubic metres (bcm) of gas per annum through the Krk terminal from 2021 to 2028.

By and large, Hungary has been dependent on Russia for its gas supply and has never been in any long-standing supply agreement with any gas seller except Russia’s Gazprom.

In 2019, Gazprom exported an estimated 9.3 billion cubic meters of gas to Hungary from the year’s beginning through October 29, and that is already a 22 % increase compared with the total gas supplies to Hungary recorded in 2018.