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Production starts at Hungary’s new natural gas field

Hungary’s state-owned MVM Group launched a new natural gas exploration and production investment at the end of last year in Berettyóújfalu, Eastern Hungary. According to the planned schedule, the first well was put into operation in mid-June.

The first well, with a depth of 2,625 metres, was put into production on 17 June. Three more wells drilled at the site will be completed and tested, and another one is expected to be deepened later this year.

Production has been ongoing since February last year in another major domestic project of the national energy company. In the Nyékpuszta field, Southeastern Hungary, four wells have been drilled so far, producing 73 million cubic metres of natural gas and 96,000 cubic metres of crude oil. Together with the existing wells, up to ten wells could be drilled at the two sites by the end of 2024.

Domestic gas consumption has significantly decreased from the pre-energy crisis level of 10-11 billion cubic metres per year to nearly 8 billion cubic metres in Hungary. The government believes that gas consumption could be further reduced by improvements in energy efficiency, supported by home renovation programs, or by increasing the utilisation of geothermal energy. However, the country will continue to reply on natural gas, which is expected to play a crucial role as a balancing energy source for weather-dependent renewables, informed Hungary’s Ministry of Energy.

Parallel to domestic investments, MVM Group is also expanding its activities in natural gas production internationally. The company recently signed an agreement to purchase a 5 per cent stake in one of the world’s largest deep-water gas fields, Shah Deniz, in Azerbaijan.

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