MVM CEEnergy Sets Forth in Owning 275mn m³ of gas from Botas, Turkey in 2024

MVM CEEnergy, a Hungarian state-owned firm furthers to purchase 275mn m³ of gas from Turkey's Botas in 2024, an agreement made public during Turkish President Recep Tayyip Erdogan's visit to Budapest. The finer details of this contract will be sorted out by the end of the year. Hungary's foreign minister, Peter Szijjarto, shared that gas purchases from Turkey are anticipated in the spring and summer of 2023. Negotiations about storing this Turkish gas in Hungary's underground facilities have also commenced.

The talks expanded to the potential collaboration between MVM and Botas on Hungarian combined-cycle gas turbine (CCGT) plant projects. It's notable that Turkish private firm Calik Enerji is participating in the bid for developing MVM's new CCGTs.

Szijjarto, on August 20, highlighted Turkey's role as a transit market for Russian gas deliveries to Hungary via the Turkish Stream pipeline. He also indicated that Turkey could facilitate Hungary's gas imports from Azerbaijan and possibly Turkmenistan in the future. While Hungary has shown interest in Turkmen gas, there's currently no direct pipeline to Europe. However, Szijjarto emphasized the mutual political will for Hungary to receive and potentially transit Turkmen gas to Europe.

Ukraine's decision to halt transit negotiations with Russia post-2024 was countered by Serbia's assurance to Hungary of providing necessary transport capacities if Hungary plans to increase gas deliveries via Serbia. An emerging Serbian-Hungarian trading company is set to launch operations in September.

Hungary has already started the process of injecting Azeri gas into storage, as per a prior agreement. Another deal with Azeri state-owned supplier Socar is in place to import more gas in the upcoming fourth quarter. Hungary's previous ambition was to finalize a long-term contract for up to 2bn m³/yr of Azeri gas. Still, recent statements by Szijjarto suggest a scaled-down figure closer to 1bn m³.

Lastly, Szijjarto also mentioned a "political agreement" with Qatar regarding a future LNG supply, potentially starting in 2027, a topic timely given the ongoing state visit of the emir of Qatar to Hungary.

According to Procurement Resource, MVM CEEnergy of Hungary plans to buy 275mn m³ of gas from Turkey's Botas in 2024, with discussions on further collaborations in energy projects. As Hungary diversifies its gas sources, it eyes supplies from Azerbaijan and possibly Turkmenistan, while also hinting at a future LNG agreement with Qatar. Amid geopolitical dynamics, such as Ukraine's stance on Russian transit, Hungary's strategic energy ties are intensifying.