Hungary to sign record gas deal with Shell, but still reliant on Russia
Photo: Hungarian Foreign Minister Péter Szijjártó (flickr.com/photos/institut_ire)
Hungary is preparing to sign a record contract with Western energy company Shell for gas supplies. However, Budapest says the country cannot yet manage without Russian fuel, said Hungarian Foreign Minister Péter Szijjártó, according to Reuters.
Details on the volumes, delivery timelines, and other terms of the upcoming contract have not yet been disclosed.
Currently, Hungary’s main gas needs are met through a long-term agreement with Russia. Szijjártó emphasized that the new Shell deal will not allow Hungary to fully abandon Russian gas due to geographic and infrastructure limitations.
"Not until we have proper infrastructure development in the region," he said.
In 2020, Hungary signed a six-year contract with Shell for an annual supply of 250 million cubic meters of natural gas from 2021 to 2027. This was the country’s first long-term deal with a Western energy company for liquefied natural gas.
"Hungary has a long history of LNG deliveries from Shell, and today's announcement will further confirm that this cooperation is working well," said a Central European gas market trader.
He also noted that Hungary remains the largest buyer of Russian gas among EU countries.
A full EU ban on Russian energy resources would pose a challenge for Hungary. Losses for the struggling economy could exceed 4% of GDP.
Meanwhile, US President Donald Trump has expressed strong dissatisfaction with Hungary’s continued purchase of Russian energy.
US Energy Secretary Chris Wright also stated that European countries must stop buying Russian oil and gas if they want stronger sanctions from Washington against Moscow.
