Ukraine could soon have additional fuel storage facilities on Hungarian territory under a new agreement between MOL and state-owned energy company Naftogaz. The two groups have signed a memorandum to develop storage capacity near their shared border, as repeated Russian strikes put Ukraine’s domestic fuel infrastructure at risk.
Naftogaz announced the agreement on Sunday, 20 September. The proposed facilities would store petroleum products in Hungary for the needs of the Ukrainian market, according to acting chief executive Serhiy Fedorenko.
The memorandum was signed at the Carpathian Economic Forum, held as part of the inaugural Carpathian Eight (C8) summit. The Ukrainian news agency Interfax reported the announcement on Sunday afternoon.
Why does Ukraine want to store fuel in Hungary?
Naftogaz says continued Russian attacks on Ukraine’s fuel infrastructure have made alternative supply routes and additional storage capacity increasingly important.
“Diversifying supply routes and creating additional storage capacity outside the strike zone is a matter of stability for the entire market,” Fedorenko said in a statement shared by Naftogaz on Telegram .
Locating storage facilities on the Hungarian side of the border could allow Ukraine to maintain some fuel reserves beyond the reach of attacks on infrastructure within its territory, while keeping them close to the Ukrainian market.
The project could therefore provide another option for managing fuel supplies if domestic storage or distribution facilities are damaged. However, the companies have not yet announced how fuel would be transported to and from the planned site.
Fedorenko said the development could improve the reliability of supplies for Ukrainian consumers and support cross-border energy infrastructure between Ukraine and Hungary.
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When could the MOL–Naftogaz fuel facilities be built?
The companies have signed a memorandum of understanding, meaning construction has not yet been announced. There is no confirmed opening date, investment figure or planned storage capacity.
The announcement concerns petroleum products, including refined fuels, rather than natural gas. Further details are also needed on the facilities’ precise location, financing and future operation.
The agreement was reached during the C8 summit, held in western Ukraine on 18–20 September. The new regional initiative brings together Ukraine, Hungary, Poland, Slovakia, Romania, the Czech Republic, Austria and Serbia, with energy security, logistics and cross-border cooperation among its priorities.
If the project proceeds, Hungary would provide a new location for fuel storage serving Ukraine. For now, the memorandum marks the beginning of the proposed development rather than the availability of additional fuel reserves.
Featured image: MolGroup
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