Hungary Signs Largest Long-Term Western Gas Deal, Diversifies Energy Supplies

Hungary is set to sign a new long-term natural gas supply contract with Shell, marking the country's largest volume and longest contract ever with a Western energy supplier. Despite this diversification effort, Hungarian Foreign Minister Peter Szijjarto emphasized that due to geographic and infrastructural limitations, Hungary will continue to rely on Russian gas supplies for the foreseeable future. Hungary's existing contracts include a 2020 deal with Shell for 250 million cubic meters of LNG annually through Croatia’s Krk LNG port, which Hungary aims to extend and increase beyond 2027. Meanwhile, Russian gas imports via the Turkstream pipeline have reached record levels, with Hungary importing around 5 billion cubic meters in the first eight months of 2025 and potentially 8-9 billion cubic meters annually. Although the European Union is pushing for a phase-out of Russian gas by 2028, Hungary supports continuing its Russian gas purchases, citing energy security concerns. The Hungarian government’s strategy focuses on supplementing existing Russian supplies with additional sources rather than replacing them outright due to current infrastructure constraints.