Hungary diversifies energy supply with stake in Shah Deniz gas field

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In a move to diversify its energy sources and reduce dependence on Russian gas, Hungarian state-owned energy conglomerate MVM has announced its purchase of a 5% stake in Azerbaijan’s Shah Deniz gas field. This strategic acquisition is being hailed as a game-changer for Hungary, offering a buffer against volatile energy prices and enhancing energy security.

Hungary, despite being landlocked, has long relied on Russian natural gas imports. The country’s dependence continued even after Russia’s invasion of Ukraine in 2022, which prompted many European nations to seek alternative energy suppliers. Hungarian Foreign Minister Peter Szijjarto emphasized the significance of this new venture during a joint press conference in Baku with his Azerbaijani counterpart. “This partnership with Azerbaijan marks a new chapter in our energy strategy, providing a much-needed stability and security to our energy supply,” he stated.

The Shah Deniz gas field, one of the largest in the world, boasts an impressive annual production capacity of 29 billion cubic meters (bcm) of natural gas. MVM’s stake in the field translates to an annual supply of 1.5 bcm for Hungary. This is a notable addition to the 4.5 bcm per year that Hungary receives from Russia under a 15-year agreement signed in 2021.

This acquisition not only diversifies Hungary’s energy portfolio but also strengthens its position in the regional energy market. By tapping into Azerbaijan’s rich natural gas reserves, Hungary is taking a decisive step towards greater energy independence and resilience in the face of global market fluctuations.

(Source: Daily Sabah | Azer News)

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