Hungary, Gazprom Agree to Long-Term Gas Supply Deal

BUDAPEST (Reuters) — Hungary has agreed to buy 6.2 billion cubic metres of natural gas from Gazprom and will begin talks on a flexible, long-term gas supply agreement with the Russian energy firm, Foreign Minister Peter Szijjarto told state news agency MTI late on Tuesday.

Hungary will buy up to 6 billion cubic meters of gas per year via an extension to the TurkStream pipeline once it is completed in October of next year, Szijjarto said.

"Our goal is to sign three five-year deals, which allows cancelling the agreement at the end of each five-year period," Szijjarto said.

"This ensures our long-term supply and also our ability to renegotiate the agreement or quit if in the meantime better options arise or the international energy market changes."

Hungary has worked to diversify its gas supply both in terms of source and routes away from the traditional Russian shipments via Ukraine, but progress has been slow as alternative pipeline networks have not been completed.

In the meantime, Hungary has agreed to buy 2 billion cubic meters of gas from Gazprom, with shipments already under way, and another 4.2 billion cubic meters to be delivered between October 2020 and October 2021, the minister said.

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