Cooperation with Hungary began in 1975. Until 1998, Russian gas was exported in accordance with the Intergovernmental Agreement on the development of the Orenburg and Yamburg gas fields.
Panrusgaz, a joint Hungarian-Russian gas venture, was set up in 1994 to help Hungary reliably meet its long-term needs in imported natural gas. The venture aims to promote the development of mutually beneficial trade ties based on strategic partnership relations. The company’s core activity focuses on importing natural gas. Panrusgaz is Hungary’s natural gas leading supplier (about 65%).
In 1996, long-term contracts for Russian natural gas deliveries were signed with Panrusgaz for the period between 1996 and 2015. Under these contracts, gas is delivered to Hungary along two directions—through Beregovo (Ukraine-Hungary border) and Baumgarten (Slovakia-Austria border).
As of December 31, 2013, about 218.9 billion cubic meters of natural gas were exported to Hungary. Deliveries to this country for 2013 reached 5.97 billion cubic meters.
Promising directions of long-term cooperation between Hungary and Russia in the oil and gas sector include the creation of new Hungarian gas transporting capacities, which could boost Russian gas deliveries and their transit to European countries. Thus, the planned segment of the South Stream pipeline through Hungary has gained special importance.
On February 28, 2008, Hungary and Russia signed an Intergovernmental Agreement on the South Stream gas pipeline. Further to this agreement, on 10 March 2009, an agreement was concluded between Gazprom and the Hungarian Development Bank (MFB), whereby a joint venture South Stream Hungary was created on a parity basis on January 29, 2010 for examination of project’s feasibility as well as for financing, construction, and operation of the Hungarian part of the gas pipeline. Later MFB was replaced by MVM (Magyar Villamos Müvek Zrt.). In late 2012, the company approved the final investment decision on building the Hungarian section of the South Stream gas pipeline.
In March 2013, Gazprom and MVM Zrt agreed an Action Plan for implementation of the Project in Hungary until 2017.
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