Historical agreement: Hungary to buy stake in one of world’s largest gas fields

Hungary and Azerbaijan have signed a “historic agreement” under which Hungary “will buy a stake in one of the world’s largest natural gas fields,” the minister of foreign affairs and trade said in Baku on Wednesday.

The foreign ministry quoted Péter Szijjártó as saying at a press conference held with Ceyhun Bayramov, his Azeri counterpart, that the agreement would open “a new dimension in Hungary’s energy security … helping the country to a much higher level at the global energy market.”

Hungary to own a part of the huge gas field

Azerbaijan’s Shah Deniz gas fields yield nearly 30 billion cubic metres of gas annually, Szijjártó said, adding that a large part of that amount was exported to Europe through the Southern Gas Corridor.

“Practically speaking, we will own the resource to cover a large part of our gas demand,” the minister said, adding that the country would be “much more protected against large fluctuations and uncertainties on the energy markets.”

Szijjártó highlighted the strategic partnership between Hungary and Azerbaijan, and said Azerbaijan’s being “an extremely important player in Hungary’s energy supply” ensured “a significant level of security” for Hungary.

The minister also noted that Hungary had purchased gas from Azerbaijan earlier this year for the first time, a total 50 million cubic metres, and added that both sides were ready to continue the cooperation. In July, he added, Azerbaijan, Georgia, Romania, and Hungary will set up a joint venture to import green energy produced in the Caspian region to central Europe.

Hungarian oil and gas company Mol has so far invested some 2 billion US dollars in Azerbaijan, “making Mol the third largest owner in Azerbaijan submarine gas fields,” Szijjártó added. He added that Mol had extraced 5 million barrels of oil from those fields last year, 15 percent of the total Mol Group production.