Thursday, August 18, 2022

HomeLNGHungary’s FM: Krk LNG terminal creates a new situation for energy security...

Hungary’s FM: Krk LNG terminal creates a new situation for energy security in CEE

The opening ceremony of the Krk LNG terminal, that started commercial operations at the beginning of this year was attended by Hungarian Foreign Minister Péter Szijjártó who underlined that the new terminal is a historic opportunity for Hungary and other countries of the region to access the global LNG market. He emphasised that secure and diversified natural gas supply is an economic, strategic and national security issue for Hungary.

The LNG terminal of Krk has the capacity to send up to 2.6 billion cubic metres per year of natural gas into the grid. All free terminal capacity has been booked for the next three years. Major players include MFGK Croatia, subsidiary of the Hungarian state-owned energy group, MVM and MET Croatia Energy Trade, a 100 per cent subsidiary of Switzerland based MET Group.

Hungarian involvement in Krk LNG is considered a priority by the Government in its endeavours of diversifying natural gas supply sources and routes.

“Here in Central Europe we are well aware that, partly due to the inherited infrastructural situation and partly for historical reasons, the security of energy supply in our countries has always been crucial,” said Mr Szijjártó.

He pointed out that the Krk terminal had created a completely new situation for the security of energy supply in Central Europe, including Hungary, as it opens the gates to buy LNG on an economically reasonable price and in significant quantities.

Last year Hungary also announced that it will buy 250 million cubic metres (mcm) of liquefied natural gas (LNG) annually for six years from oil and gas company Royal Dutch Shell via Croatia’s Krk LNG port. The long-term purchase agreement with Shell is the first long-term contract in the history of Hungary with a Western player.

The Croatian LNG terminal also fits into the EU’s agenda of diversification as the terminal is one of the endpoints of the North-South Gas Corridor. The EU supported the implementation of the terminal with 101.4 million euros funds from the Connecting Europe Facility.

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