Wedoany.com Report-Sept. 10, Shell (SHEL.L), one of the world’s largest oil and gas companies and the biggest trader of liquefied natural gas (LNG), signed a 10-year natural gas supply agreement with Hungary’s MVM CEEnergy on Tuesday. The deal is set to begin in January 2026 and will provide Hungary with around 200 million cubic metres (mcm) of natural gas annually.

A view shows a logo of Shell petrol station in South East London, Britain, February 2, 2023.

This marks Shell’s second major long-term supply agreement with Hungary. In 2020, the two sides signed a six-year contract covering 250 mcm of LNG annually between 2021 and 2027, which represented Hungary’s first long-term LNG deal with a Western supplier. The LNG for these agreements is delivered through Croatia’s Port Krk terminal, where it is regasified and transported into Hungary via the Hungary-Croatia pipeline.

Hungary consumes roughly 8 billion cubic metres of gas every year. A large portion still comes from Russia, making Hungary the European Union’s biggest buyer of Russian gas. Foreign Minister Peter Szijjarto said on Tuesday: “With this, are we going to be able to live without Russian gas? No, because of geographical and infrastructural conditions. Not until we have proper infrastructure development in the region.” He also called the new deal with Shell the country’s “largest volume and longest western supply contract ever.”

Despite the new supply from Shell, Hungary will continue purchasing gas from Gazprom. In recent years, Hungary has secured volumes from Russia through the Turkstream pipeline, which crosses Bulgaria and Serbia before reaching Hungary. According to Szijjarto, by the end of August this year Hungary had imported about 5 billion cubic metres of gas via Turkstream through Serbia, suggesting that imports through this route could reach record levels in 2024.

Hungary has also rejected European Commission proposals to phase out Russian energy imports, along with Slovakia. Both countries emphasized their need for secure supplies and noted infrastructure limitations.

In addition to Russian and Shell supplies, Hungary diversifies its gas purchases with imports from Romania and smaller quantities through the HAG pipeline, which links Austria and Hungary. The interconnector with Slovakia also allows Hungary to transfer gas further into the region.

For Shell, the agreement reinforces its presence in central and eastern Europe and highlights the company’s role in meeting energy demand across the region. For MVM CEEnergy, it ensures greater supply security and expands its long-term portfolio beyond existing arrangements.

The deal comes as global energy companies continue to adjust their strategies in response to changing supply dynamics and rising demand. By securing LNG from Shell, Hungary strengthens its import sources while continuing to rely on multiple routes to balance domestic consumption and regional trade.