Cooperation in the area of natural gas supplies to Hungary began in 1975, and until 1998, gas was exported under an intergovernmental agreement on development of the Orenburg and Yamburg fields. As of 31 December 2018, a total of 250.5 bcm of natural gas had been exported to Hungary. In 2018, supplies to the country amounted to 7.4 bcm.

Panrusgaz, a Hungarian-Russian gas sector joint venture, was set up in 1994 to ensure that Hungary’s long-term natural gas import requirements would be met reliably, to develop mutually beneficial trade ties, and to maximize the opportunities given by the strategic partnership. Importing natural gas is the company’s core business. Panrusgaz is Hungary’s leading natural gas supplier (around 60%). 

In 1996, long-term contracts were signed with Panrusgaz for supplies of natural gas to Hungary in the period of 1996-2015. Currently there are two contracts between Gazprom Export and Panrusgaz valid through 2019, and two contracts valid through 2021. Under these contracts, gas is supplied to Hungary via two routes: through Beregovo on the Ukrainian-Hungarian border and Baumgarten on the Slovak-Austrian border.

On 5 July 2017, Gazprom Export and Hungarian Gas Trade Ltd signed a Memorandum of Understanding, which reflects the intent of the parties to continue long-term cooperation with regard to Russian gas supplies to Hungary. On the same day, Alexey Miller, Chairman of the Gazprom Management Committee, and Péter Szijjártó, Minister of Foreign Affairs and Trade of Hungary, signed a roadmap to implement a number of measures aimed at developing Hungary’s gas transmission system.