The gas trader unit of state-owned Hungarian Electricity Works (MVM) has signed a six-year agreement with Shell to purchase an annual 250 million cubic metres of liquefied natural gas (LNG) for regasification at the LNG terminal in Krk, Croatia from January 1, 2021 to October 1, 2027, Hungary’s Minister of Foreign Affairs and Trade said on Friday.
Both conditions are now met for the delivery of liquefied natural gas (LNG) from the Krk LNG terminal, Péter Szijjártó told a press conference in Budapest.
MFGK Croatia, the Croatian unit of the MVM, has recently signed a contract booking regasification capacity of some 1 billion cubic metres annually over a period of almost seven years at the Krk terminal.
The terminal is to start operating from January 2021.
Szijjártó said liquefied gas will be delivered, after regasification, to Hungary via the Hungary-Croatia gas pipeline. As a result, 10 percent of Hungary’s gas needs will be covered from the Krk LNG terminal until the end of 2027, he said.
This is Hungary’s first long-term agreement with a Western market participant, he said, adding that the agreement was signed at a competitive price.