Dhe dependency on gas is forcing action. In the case of Hungary, this means higher imports from Russia. The small Central European country wants to buy an additional 700 million cubic meters of gas from Russia. This was announced on Thursday by Prime Minister Viktor Orbán’s right-wing conservative Fidesz party. Foreign Minister Peter Szijjarto will travel to Moscow later today to discuss new gas supplies.
Increased gas imports were announced last week. The national conservative government had declared an energy emergency. Accordingly, the export of natural gas was prohibited. A price cap for households with higher energy consumption will also be removed. “We can’t afford to waste more anywhere.”
Due to supply problems and rising prices, it is unlikely that there will be enough gas in Europe for the autumn and winter heating season, Orbán’s chief of staff Gergely Gulyas said of the plans, without naming the target country. He announced that Hungary would increase domestic energy generation opportunities. Natural gas production is to be increased from 1.5 billion to two billion cubic meters. In addition, more lignite will be mined and a lignite-fired power plant that is currently out of service will be reconnected to the grid.
Higher production in the only nuclear power plant
The country’s only nuclear power plant also has to increase its production. The steps should go into effect in August. Hungary relies heavily on fossil fuel imports from Russia. About two-thirds of its oil needs and more than four-fifths of the natural gas it needs come from Russia. According to earlier information from Foreign Minister Peter Szijjarto, the gas storage facilities in the EU country are 44 percent full, which corresponds to around a quarter of annual consumption.
The small Central European country also wants to divert all gas supplies from Russia to the Turkstream pipeline, which brings the gas into the country via Serbia. The step is necessary because gas deliveries from Austria to Hungary have fallen due to the uncertainty in the Western European pipeline system. The delivery route via Serbia is stable.
Hungary signed a 15-year deal with Russia last year. Instead of the previous transfer route via Ukrainian territory, it was contractually agreed that 3.5 billion cubic meters would be delivered to Hungary via the new Turkstream gas pipeline via Serbia and one billion cubic meters via Austria.
Gas is more important for Hungary’s economy than for other economies. This is shown by an evaluation by the think tank Agenda Austria. Accordingly, there are major differences in dependence on natural gas within the EU. Countries like Hungary or Slovakia consume significantly more for economic output. The additional amount now planned is a small fraction of annual consumption of 10.8 billion cubic meters, according to BP Statistical Review of World Energy.
