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.