The start of Liquified Natural Gas (LNG) supply from the Krk terminal in Croatia open a new age in Hungary’s natural gas supply, as underlined by Hungarian power company MVM whose subsidiary MFGK started to be involved at the Krk terminal after the docking of the LNG carrier Tristar Ruby.
This supply is the first of a series after MFGK signed an agreement earlier in June booking LNG regasification capacity of 6.75 billion cubic metres (bcm) from 2021 until 2027.
MFGK’s supply contracts will provide a real natural gas supply and route diversification for Hungary since the company has now direct access to natural gas sources and market players previously unavailable in the Hungarian and regional markets. LNG procured by MFGK at the Krk Terminal is exclusively sourced from Western European market players.
Furthermore, MFGK’s involvement in Krk is in line with MVM Group’s strategic expansion goals. Being one of the largest conglomerates in Central and Eastern Europe with a presence in nearly all components of the electricity and natural gas value chains, MVM Group is the main guarantor of Hungary’s energy security. MFGK’s involvement in Krk LNG also fits into MVM’s regional growth strategy targeting six countries (Austria, Slovakia, the Czech Republic, Croatia, Serbia and Romania).
“Secure and diversified natural gas supply is an economic, strategic and national security issue for Hungary,” read MVM press statement.
The Krk LNG terminal is part of the European Union’s goal of diversifying natural gas supply sources and routes, as the terminal is one of the endpoints of the North-South Gas Corridor, one of the priority projects of Central and South-Eastern Europe energy connectivity (CESEC) initiative, furthermore, it is also in line with EU strategy for liquefied natural gas and gas storage of 2016.