Agreement Signed with Gazprom on Secure and Affordable Gas Supply

The Hungarian state considers it its duty and obligation to ensure the country’s energy supply in the long term, and cooperation with Gazprom means not only competitive prices but also energy security, Minister of Foreign Affairs and Trade Péter Szijjártó said at the plenary session of the St. Petersburg International Gas Forum 2024.

The politician noted that in the past, the competitiveness of the European economy was based on advanced Western technology and the easy access to relatively cheap Eastern minerals and natural resources. He added that because of decisions made in Brussels in recent years, this basis has been removed and no new one has been created.

According to Mr. Szijjártó, the main political decision-makers in Europe see the issue of energy supply as ideological,

with the result that European companies have to pay three times more for gas and five times more for electricity than their American competitors.

“For us, the issue of security of energy supply is physical. The physical nature is determined by the infrastructure. If you have a pipeline from the source to the consumer, you can buy gas or oil from there. If there is none (…) then it can be a nice dream, but you cannot replace the existing source and transport route,” he said.

The Minister pointed out that existing reliable sources should be replaced when the consumer is not satisfied or when a better alternative is available. “We are satisfied with the cooperation between Russia and Hungary, Gazprom and Hungary. So far, all contracts have been respected, deliveries have been on time and when we needed additional quantities, we were able to agree on them,” he underlined.

So far we have not received a better offer compared to our Russian partners. No one has come up with a cheaper or more reliable source.

My question is why should we change?” he added. He noted that if the Hungarian side were to replace its cooperation with Russia with someone else, it would not be able to physically supply the country in full because there is no alternative infrastructure available and it would cost more.

On the imminent expiry of the agreement on the transit of Russian gas through Ukraine, he said that this was not a problem for Hungary because it had been brave enough to build an alternative route from Russia to Hungary via Türkiye, Bulgaria, and Serbia a few years ago, “regardless of threats and friendly advice from friends and allies.” This alternative route could also help other Central European countries, he suggested.

Responding to a question, the Minister said that a fair partnership between Gazprom and Hungary would guarantee security of supply and price competitiveness.

He highlighted that long-term security of supply is guaranteed by a 15-year contract signed in 2021, despite political pressure, while price competitiveness is guaranteed by the continuous supplementary trade contracts concluded between the national company and Gazprom.

Mr. Szijjártó emphasized that the next such contract will be signed on Thursday. According to the politician,

Hungary will receive 6.7 billion cubic meters of gas this year, and next year it will buy enough gas to use the full capacity of the TurkStream pipeline.

“Yes, there is political pressure on us, but our job as the Hungarian government is not to satisfy those who put pressure on us, our job is to ensure the country’s secure supply,” he concluded.

Via MTI; Featured image via Pixabay