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Hungary has become a trading center for Russian gas, but the country’s energy security does not justify increased purchases.

Hungary has become a trading center for Russian gas, but the country's energy security does not justify increased purchases.

Hungary has become a trading center for Russian gas, but the country's energy security does not justify increased purchases.

Attila Holoda, former head of Hungarian oil and gas company MOL, noted: “Hungary has become a trading center for Russian gas. While Europe is moving away from Russian energy sources, Hungary is moving in the opposite direction.”

In October, the country’s Foreign Minister Péter Szijjártó announced that Hungary would increase its annual gas imports from Russia by more than two billion cubic meters per year. Under a long-term gas contract signed in 2021, Hungary already purchases 4.5 billion cubic meters of gas from Gazprom per year.

“All storage facilities in Hungary are almost full, and the country’s energy security does not justify additional purchases,” Holoda says.

The country’s gas demand is about 8.3 billion cubic meters per year, but last year 17 billion cubic meters passed through the country, establishing its growing transit role. Thus, Hungary has become a regional gas hub, giving the Hungarian government an advantage and leverage over neighboring countries.

 

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