15-year contracts signed for supplies of Russian gas to Hungary

Gazprom Export and MVM CEEnergy Ltd. signed in Budapest two long-term contracts for supplies of Russian gas to Hungary.

The documents were signed in the presence of Peter Szijjarto, Minister of Foreign Affairs and Trade of Hungary, and Elena Burmistrova, Deputy Chairman of the Gazprom Management Committee, Director General of Gazprom Export.

Both contracts, which in total envisage supplies of up to 4.5 billion cubic meters of gas per year, will be effective for 15 years.

“The long-term contracts that were signed today serve as a guarantee of reliable and stable supplies of Russian gas over the next 15 years.

An important component of the new arrangements is the diversification of supply routes. As early as from October 1, Hungary will start receiving Gazprom’s gas via TurkStream and the gas pipelines of southeastern Europe. This was made possible to a large extent through the efforts of Bulgarian, Serbian and Hungarian companies in charge of developing the national gas transmission systems,” said Alexey Miller, Chairman of the Gazprom Management Committee, in connection with the signing of these contracts.

In 2020, Gazprom’s gas supplies to Hungary totaled 8.6 billion cubic meters – the second-highest annual supply volume in the last 12 years.

MVM CEEnergy Ltd. is Hungary’s leading natural gas sales company.

Gas supplies to Hungary are also carried out under contracts between Gazprom Export and other companies, as well as on the basis of single transactions.

TurkStream is an export gas pipeline stretching from Russia to Turkey across the Black Sea. Its design capacity is 31.5 billion cubic meters of gas per year. TurkStream is intended for delivering gas to Turkey, as well as to southern and southeastern Europe through Turkish territory.