Hungary has commenced the pumping of the first 50 million cubic meters of gas into its gas storage facility as part of the agreements reached in June 2023 between SOCAR and MVM CEEnergy in Baku, according to a statement by Hungarian Foreign Minister Peter Szijjarto, who supervises gas negotiations. The gas supply to Hungary is part of a contract signed with Azerbaijan in June, which stipulates the delivery of 100 million cubic meters of gas to Hungary's gas storage facilities by the end of this year. Peter Szijjarto highlighted that Europe has been grappling with a serious shortage of energy resources for the past 1.5 years, leading to a surge in the cost of Russian gas due to sanctions against the Russian Federation and the refusal to import Russian gas. However, Hungary has managed to address this issue by securing alternative supplies. An informed source explained to Turan that, technically, SOCAR is currently unable to supply gas of Azerbaijani origin directly to Hungary. Instead, SOCAR Trading has organized a swap operation to provide gas to Hungary. The possibility of direct supply of Azerbaijani gas to Hungary hinges on the increase of Azerbaijani gas transit to Europe via Turkey, but difficult negotiations with Turkey are still ongoing. Hungary considers Turkey to be a crucial gas player, given that a significant portion of gas passes through Turkey. Szijjarto revealed that Hungary has already initiated negotiations with Turkey, discussing both the transit function and the potential supply of necessary fuel volumes to Europe. As of now, Hungary has accumulated 48% of its annual hydrocarbon consumption, surpassing the European average of 25%. Previously, Hungary had been purchasing gas from Russia, including through a pipeline that passes through Ukraine, Serbia, and Austria. However, concerns about possible restrictions on Ukrainian transit in 2025 have prompted Hungary to seek new suppliers. Talks on gas with Oman and Qatar have already taken place, and the possibility of cooperation with Qatar is being discussed, starting in 2027. Hungary's annual gas demand exceeds 10 billion cubic meters.

Source: Turan News Agency