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A historic agreement has been reached between Hungary and Azerbaijan on the purchase of a stake in one of the world’s largest natural gas fields, significantly enhancing Hungary’s energy security, Minister of Foreign Affairs and Trade Péter Szijjártó announced in Baku.
At a joint press conference with his Azeri counterpart, Jeyhun Bayramov, Minister Szijjártó revealed that the “historic agreement” signed earlier in the day will enable Hungary to elevate its standing in the global energy market. “Hungary has agreed to buy a stake in one of the world’s largest natural gas fields located here in Azerbaijan,” he said. “The Shah Deniz field, with an annual production of nearly 30 billion cubic meters, transports a significant portion of its gas to Europe via the Southern Gas Corridor,” he added.
An expanded meeting of the delegations of Foreign Ministers of Azerbaijan and Hungary took place @AzerbaijanMFA.
The parties addressed a wide range of issues on the Azerbaijan-Hungary strategic partnership agenda, such as economic, agricultural, energy, and political… pic.twitter.com/iTSM3q1t0m
— MFA Azerbaijan (@AzerbaijanMFA) June 5, 2024
Under the agreement, Hungary will acquire an ownership stake in this gas field, marking a transformative step for the country’s energy security.
This development introduces a new dimension to Hungary’s gas supply security. Essentially, we will own a significant portion of our natural gas needs,” Mr. Szijjártó noted.
He emphasized that this “historically new situation for Hungary’s energy supply” will offer greater protection against “major energy market price movements and uncertainties.”
The strategic partnership between Hungary and Azerbaijan provides Hungary with a substantial competitive advantage and enhanced security, as Azerbaijan has become a crucial player in Hungary’s energy supply. Péter Szijjártó highlighted three key milestones achieved this year. Firstly, Hungary purchased natural gas from Azerbaijan for the first time, amounting to 50 million cubic meters, with both sides ready to continue their cooperation. Secondly, by July, a joint venture involving Azerbaijan, Georgia, Romania, and Hungary will be established to transport green energy produced in the Caspian region to Central Europe.
Thirdly, he pointed out that MOL’s (Hungarian Oil and Gas Plc.) investments in Azerbaijan have reached USD 2B, making the Hungarian company the third-largest owner of the South Caucasus’s largest offshore oil field. Last year,
MOL produced over five million barrels of crude oil, accounting for 15 percent of the company’s group production.
As part of this ongoing cooperation, negotiations have commenced between MOL and SOCAR (State Oil Company of Azerbaijan) on a framework contract for the purchase of liquefied natural gas. “With Azerbaijan now playing a key role in our energy supply, we will benefit from a much more stable and secure energy supply,” Szijjártó concluded.
Via MTI; Featured Image: Facebook / Szijjártó Péter