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A historic long-term gas purchase agreement has been reached with Shell, the capacities required for regasification have been contracted, thus fulfilling both conditions for the arrival of liquefied natural gas (LNG) from the Krk LNG terminal, he said. Friday, Foreign Minister Péter Szijjártó at a press conference in Budapest.
The minister – writes MTI – explained that the natural gas trading company MVM Magyar Villamos Művek Zrt. It has reserved 1 billion cubic meters of capacity annually from January 1, 2021 to October 1, 2027 at the Krk LNG terminal in Croatia, which will start operating in January next year. . One billion cubic meters of liquefied gas will arrive each year, which will be transported to Hungary via the Hungarian-Croatian gas pipeline after regasification.
All of this means that by the end of 2027, ten percent of Hungary’s gas needs will be covered from the LNG terminal in Krk.
Shell has a six-year long-term purchase contract to purchase 250 million cubic meters of liquefied gas per year. This is the first long-term contract in the history of Hungary with a Western player. The contract was concluded at a competitive price, as a result of which the results and achievements of Hungarian overhead reduction can be defended.
Péter Szijjártó said that when deciding on Hungary’s gas supply two aspects are taken into account, the reliability of the supply and the price. Partly due to the coronavirus and partly due to the severe overproduction crisis that preceded it, the price of LNG fell below that of the pipeline. Therefore, it was decided to increase the role of LNG in the country’s gas supply. There are two preconditions for this: one is the reserve of capacity at the gasification ports where the gas can arrive, and the other is that a source must be purchased.
The minister said that gas is currently the most important role in energy supply, making the country’s gas supply a critical issue. In recent years, the government has made the necessary investments and concluded the necessary agreements, so today it can be said that Hungary’s gas supply is secure in the long term. Connections with neighbors have been built, and six of the seven neighboring countries now have gas pipelines to Hungary. A fair and trusting relationship has been established with companies from the East and West, and cooperations will be maintained in the future, as it is in the country’s interest to bring gas to the country from as many sources as possible, on more routes, said the Minister.
Captain István, Shell’s global vice president, said the company is a pioneer in the liquefied natural gas (LNG) industry, with more than 50 years of experience in the production, marketing, storage and transportation of LNG. Using natural gas as a cleaner fossil fuel can help meet the growing demand for cleaner and cleaner energy, replacing coal or other liquid fuels.
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