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Hungary to supply 8 mcm of natural gas to Ukraine

Based on the joint efforts of Hungary’s transmission system operator (TSO) FGSZ and the Gas TSO of Ukraine, it has become possible to supply natural gas to Kyiv from the first quarter of 2022, through the VIP Bereg network point.

Source: GTSOU

Under this agreement, Ukraine will be able to obtain up to 8 million cubic metres (mcm) of gas per day from Hungary and together with the existing 27 mcm of daily capacity from Slovakia, this will increase the total amount of guaranteed gas import capacity to 35 mcm per day.  

The introduction of firm import capacity from Hungary contributes to the diversification of gas supply sources and strengthening of the energy security of Ukraine. Therefore, Ukraine is increasing its firm import capacity by almost 30 per cent and receiving access to new sources of natural gas supply, namely to the LNG terminal on the island of Krk (Croatia).  

“For the first time since 2014, Ukraine has increased its guaranteed gas import capacity from Europe,” commented Sergiy Makogon, GTSOU CEO. “It is important that a new contract is signed with Hungary, from which Ukraine has transported 90 per cent of all the import gas this year by virtual reverse. This demonstrates market demand for the HU-UA gas transportation route and advantages for both countries. For the first three months of 2022, we will work in the testing mode: we will coordinate and adjust processes with the Hungarian operator FGSZ to ensure reliable transportation of natural gas to Ukraine.”

FGSZ underlined that the establishment of the HU>UA firm capacities have no effect on the pre-existing UA>HU transmission capacities.

“This new pilot option comes amidst extreme market conditions with limited supply,” emphasised Szabolcs I. Ferencz, the Chairman of the Board and CEO of FGSZ. “Our goal with this development is, therefore, to facilitate access for shippers for trading natural gas and to enhance the security of supply during a tight winter market. The test period could bring additional benefits, such as hopefully establishing a new supply route towards Ukraine, which may incorporate new sources such as Croatian LNG.”  

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