Hungary intends to import crude oil and LNG from Nigeria to cater to growing domestic demand. Credit: Nigerian National Petroleum Corporation.

The Government of Hungary has expressed its intention to import crude oil and Liquefied Natural Gas (LNG) from Nigeria.

The intention was disclosed when Hungarian Ambassador to Nigeria Professor Gabor Ternak called on Nigerian National Petroleum (NNPC) group managing director (GMD) Dr Maikanti Baru in Abuja.

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Through the proposed purchase deal, Hungary aims to bridge the existing supply gap in the country.

Ternak said: “Hungary depends on oil importation to serve its energy needs as the country is non-oil producing. We want to diversify our sources of crude oil and LNG import and we are considering purchasing these products from Nigeria.”

Crude oil from Nigeria is expected to serve refineries in Hungary.

In exchange, the Hungarian Ambassador proposed to offer the services of Hungarian firms that specialise in repairs, maintenance and building of refineries.

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“We want to diversify our sources of crude oil and LNG import and we are considering purchasing these products from Nigeria.”

Furthermore, Nigeria can also receive assistance from Hungarian universities in the areas of capacity building of oil workers.

However, Dr Baru stated that tendering process for the selection of next year’s crude oil off-takers has started and that Hungarian firms can participate in the bidding process to secure rights.

Baru said: “If you don’t participate in the tendering process, you would have to buy the products from one of the traders. However, if you participate with companies and refineries that meet our requirements, they could be shortlisted as off-takers.

“Normally, gas business is a long-term business and NLNG is not different, we already have an existing 20-year contract that will expire by 2022.

“Nevertheless, we have what is called ‘spot cargoes’, when there is excess production, and the current contractors have gotten their share as enshrined in the contract, the excess production will be given to registered off-takers in the system.”