Hungary Signs 10-Year Gas Deal with Shell to Reduce Russian Dependence

Hungary has signed a 10-year gas supply agreement with energy giant Shell, taking the first step toward diversifying its energy supply as the EU prepares to abandon Russian gas imports.

The Gaze reports on it, referring to Bloomberg.

The signed agreement is designed to supply 2 billion cubic meters of gas annually, starting in 2026. Deliveries will be made through Czech and German pipelines, allowing Budapest to reduce its dependence on Russian imports.

Despite the EU's plans to completely stop importing Russian energy by the end of 2027, Hungary has long resisted these measures, maintaining strong energy ties with Russia. The country has a contract with Gazprom for 4.5 billion cubic meters of gas per year until 2036 and additional purchases from 2022.

Foreign Minister Péter Szijjártó stressed that the EU has not provided sufficient support for diversification, and the existing pipeline infrastructure limits the possibilities for connecting to alternative markets.

At the same time, Budapest is negotiating new contracts with other Western suppliers, but has not yet disclosed any details.

Szijjártó also noted that Hungary's plans to develop nuclear energy, including the addition of two new reactors, will reduce gas imports by about half and provide up to 70% of electricity needs from its own capacities.

This, in his opinion, will reduce the country's dependence on external suppliers and strengthen energy security.

“We hope that we can move forward in a way that the two new reactors can be connected to the grid the first half of the next decade,” he said.

The Gaze previously reported that the European Union is considering ways to speed up decision-making in foreign policy, where most issues currently require unanimity, which has been hampered in recent years by Hungary's position.