Anglo-Dutch energy major Shell has signed a supply deal with Hungary to supply the nation with liquefied natural gas (LNG) via the upcoming Krk import terminal in Croatia.
Hungary will buy 250 million cubic metres (mcm) of natural gas equivalent per annum for a period of six years, Reuters reported, citing Hungary Foreign Affairs Minister Peter Szijjarto.
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Szijjarto was quoted by the news agency as stating: “Hungary signed a long-term gas supply agreement for the first time with a Western company.
“Hungary will secure 10% of its gas supply from the West, which is a huge step in Hungary’s energy diversification.”
Hungary has previously only imported Russian pipeline gas under long-term supply agreements with Gazprom and its export arm.
Shell Global executive vice-president Istvan Kapitany said that natural gas could help fulfill the demand for more cleaner energy, replacing coal and other liquid fuels.
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By GlobalDataKrk terminal is expected to come online in the next few months. In the meantime, Hungary’s government has also agreed on a 6.2bcm deal with Gazprom and has said it wants a ‘flexible’ long-term agreement (LTA) with the company.
In June this year, Hungary’s state-owned firm MVM announced plans to purchase up to 1 billion cubic metres (bcm) of gas per annum through the Krk terminal from 2021 to 2028.
In July 2015, LNG Croatia, a joint venture (JV) formed by energy utility HEP and gas transmission system operator Plinacro, invited bidders for developing a LNG terminal on the island of Krk.
