Signed a 10 -year gas supply agreement or Hungary with Shellsignaling one of its first steps to differentiate Russian flows, as the European Union’s deadline for gradual abolition of these imports approaches.
Specifically, Hungary signed today (9.9.25) an agreement with Shell for 2 billion cubic meters of natural gas to be delivered over a decade, starting in 2026, Foreign Minister Peter Sigado said in an interview with the Gastech Conference. He added that supplies will be delivered to Hungary through Czech and German pipelines, according to Bloomberg.
While the EU aims to stop imports of Russian fossil fuels by the end of 2027, Hungary has long expressed its opposition to these plans, reinforcing its energy ties with Russia since the start of the war in Ukraine. Budapest has called on the EU to compensate the Member States for diversification efforts from the cheapest Russian flows and now seems to be going on steps to find alternatives.
“We are negotiating some other contracts with other Western suppliers, but we are not there yet to announce them,” Sigiarto said.
However, Sigyrto argued that the current EU plan to gradually abolish Russian energy imports was still a significant risk to Hungary’s energy security, arguing that it does not have sufficient pipeline infrastructure derived from other markets to ensure adequate capacity.
The country has a contract with the Russian Gazprom PJSC for 4.5 billion cubic meters per year until 2036, which has been completed with additional purchases in 2022.
Sigiarto said that Hungary’s nuclear ambitions, which include doubling atomic energy capacity by adding two new reactors, would reduce the current gas imports in half and significantly reduce pressure on fuel supplies.
“This is a dimensional different situation. We hope that we can move on in a way that the two new reactors can connect to the network in the first half of the next decade, “Sigiarto concluded.