Russian gas purchases by Hungary still staggeringly high compared to other EU countries
Russian gas continues to flow into Hungary, with an estimated 2.6 billion cubic metres arriving so far this year, which is 59 percent more than last year’s volume.
According to Népszava’s calculations based on Eurostat data, the price of Russian gas rose again in April to over 7 percent of the market price. After charging HUF 110 (EUR 0.28) per cubic metre, Russia sold Hungary the fuel at HUF 101 in April, 8 percent cheaper. However, the reference price on the Dutch stock market, TFF, two months earlier was HUF 108 (EUR 0.27), a 13 percent drop from February, with an EU average of HUF 94 (EUR 0.24). A price increase of around 7 percent is considered average.
So far this year, 2.6 billion cubic meters of Russian gas have been delivered to Hungary, 59 percent more than last year, when the total of 6.7 billion cubic meters also far exceeded the 4.5 billion cubic meters per year set in the new long-term Hungarian-Russian gas contract signed at the end of 2021. Other EU member states have already switched to other, more reliable suppliers.
A distinction needs to be made between gas coming through pipelines from Russia and the alternative used by other countries, liquefied natural gas (LNG), although Russia has recently started producing LNG too. Countries like the Czech Republic, which also has no coastline like Hungary, do not buy Russian gas, while in Austria, the Austro-Russian gas contract until 2040 is under discussion as well.
In April, the 14 countries reporting to Eurostat bought a total of 4 billion cubic metres of Russian gas, either piped or liquefied. Belgium, for the first time in almost two years, bought 116 million cubic metres by pipeline in addition to the LNG. Although the Hungarian data is the 4th highest of 15 pipeline and LNG transactions, after France, Italy and Spain, it is by far the highest in terms of population. The average gas tariff of Hungary, unlike in previous years, was in the middle of the range, similar to March, Népszava reports.
Is all the Russian gas bought being used in Hungary?
Photo: depositphotos.com
While domestic demand is falling, and market prices, including Russian prices, have been more or less stable for a year and a half, the Hungarian Ministry of Energy recently announced that the level of domestic storage is already over 75 percent full. So it is not impossible that some of the quantity bought will eventually be sold.
Although Hungary lost HUF 4 billion in April compared to the stock market purchase, and HUF 234 billion (EUR 593 million) since October 2021, this year’s total is close to zero, showing that prices are levelling out. Compared to April’s stock market prices, as prices have risen since then, the country gained HUF 3 billion (EUR 7.3 million) this time. However, based on this calculation the loss was HUF 305 billion (EUR 773 million) since October 2021 altogether.
As we previously reported, current court cases against Gazprom in the EU could result in several countries, including Hungary, being cut off from Russian gas. This could lead to the cessation of gas deliveries from the Russian company to the Hungarian state gas provider, as Gazprom would not have access to the payments initiated by the Hungarian gas provider, MVM. Arbitration courts have previously ruled against Gazprom in various European cases due to halted gas deliveries in 2022.
Read also:
- FM Szijjártó in Russia: No one has the moral right to put pressure on us to cut our relationships – Read here
- Hungary’s government rejects pressure on energy policy
Featured image: depositphotos.com
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5 Comments
The history of the “Culture” of the Orban led Fidesz Government of Hungary, this subject matter, would not SURPRISE.
What is in the “Staggering” higher price, that Orban has STRUCK with Russia, that although a NEED of all Hungarians industry and “other” on a daily basic’s that has and continues to “Bite” our pockets HARD, there are QUESTIONS need Answering.
“Grease my Back and I will GREASE yours” = the history, there culture, there PRACTICE of “Veiling” the Facts and Truth of there trading and partnership dealings and arrangements – this Hungarian – Russian arrangement has MASSIVE question marks attached to it.
Fidesz is “pro-war” by financing Russia’s war machine through its’ over-priced purchases of Russian gas. Hungary has connector pipes to several other countries that it could use to purchase non-Russian gas. Hungary is also financing Russia’s war through the large payments it makes to Russia to buy an additional nuclear reactor at Paks.
Fine by me. It’s why we’re paying 5,000 Ft. for the same amount of gas that you get charged 80,000 Ft. in Germany (these are first-hand experience figures, BTW).
Europe’s “leaders” (traitors, more like) were blindly pursuing their inefficient and uneconomical “green” B.S. while continuing to rely on Russia, even when it was plainly obvious that Russia was trouble. Then, when Russia did the unthinkable and thought the undoable, those same “leaders” demanded we drop all reliance on Russia’s gas over night. LOL! Yeah. Right. And replace it with what? St. Greta’s farts.
The Net Zero sh.. has been a total failure. Reopen coal mines and power stations, resume drilling, start fracking, build nuclear. In the meantime, get gas from whoever sells it the cheapest. We do not want to be priced out of being able to heat (or cool) our homes, take showers, drive our cars, etc. We do not want to be thrown back into the 18th century!
The comment of contributor Larry, I have no reason to DOUBT what he writes, other than what has been proven fact in Hungary, the government of your country is simple corrupt.
In saying that, what Larry writes, this is all in no doubt the minds, they would know in Brussels of this gas deal arrangement of Hungary and Russia, and other pipe connections or availability of gas purchase to Hungary but not used in preference to there Russian “partners in crime”.
I often with great concern, just coming back to Larry’s remarks, the people of Hungary right through the “guts” of Hungary do they know, do they understand, do they really care on subjects Larry makes ?
Just goes on looking at Hungary from the outside in, population of 9.6 million, that is growing older, more deaths in a year to babies born, an economy that is under heavy pressure, that it’s currency is weak, it is in trouble.
Then the question of it’s place in the E.U and NATO appear very much on the outer, and as reports over the past 2 years have pointed to, it’s Democratically elected Government, doesn’t operate as a Democracy, controlling it’s press, it’s Courts and rules under a decree because of it’s numbers in it’s Parliament, just appears a place that a eruption in many aspects, it’s people against it’s Government, it’s weak economy, relationships with America and numerous other countries that are Democratic in there political practice, just all seems a big ugly scene steaming from and out of there Government, who don’t appear to be the “flavour” of the months, over the last number of years and at this point in time.
It’s a Slime game being played out by Hungary when it’s obvious they grow on building relationships with country’s of communism laws and dictatorship rule that see’s Democracy in Hungary just being swept away abandoned crushed by the government they have, for in time had near on 20 years.
China and Russia universally known, want larger pieces slices control and power in Europe.
Hungary, what there rated 26 of 27 country’s under the EU flag, for China and Russia they are a cheap near give away take over target, that gives China and Russia another piece of Europe.
Russia the war they mounted on the Ukraine, in the package of there reasoning to war against the Ukraine, is a bigger slice of the European landscape.
Hungary know Russia had them from what 1945-1989 when the wall fell, as there law makers, controlled them, under laws of communism.
Maybe looking very much is the case, generations of Hungarians feel of greater comfort, even more secure under communism as there Government, preferring it to Democracy.
Intellectually it gravely concerns me the capacity of Hungarians through all classes of there people – there capacity to understand what it appears they have agreed, feel comforted by, that overwhelmingly gives every clear indication in supporting the return of there country to again be under law ‘s of Communism, that would be a Dictatorship.
Hungarians, need to a.s.a.p decide if it’s Communistic Law or Laws under Democracy – they see the future of there country.
Could be said, that Hungary, they have been that far committed by there government to a return to communism again, that to being a democracy is already a thing of the past.
What in the immediate future, what stance objection retaliation, is likely to be imposed “cranked” up intensified – by the EU – NATO – America – United Kingdom and all country’s that are democratic.
Surely they are.
They can ill-afford continue to sit back, play a game of behind closed doors laughing at the government of Hungary, there “slime games” – against Democracy.
It must be the case, they, with all “guns blazing” – oppose the Hungarian government, there on-going move to communism.
They, in the interest to the future of democracy in Europe and the global world, country’s that are democratic, take actions that are ruthless in opposing the “turn around” – the “sacking” the dismissing, passing over, the replacement of Democracy in Hungary, for a Hungary again be under communism laws, there partnerships relationship preferred with Russia and China, than Democracy.
Storm clouds build over Hungary and it’s people having a hard time of it for some years that continues to build what is happening in Hungary, that looks a disaster waiting to happen.
It’s a SLIME game, a game of cheating the people, the country of Hungary being played out by the present Government of Hungary.
I’m wondering why “Nepszava” is not publishing about the nuclear fuel imported by USA from Russia or metal imports to Germany from Russia or the “indian” oil export to Germany which is 99.999999999% Russian oil + 1dl Indian oil. 🤷♂️But Orban supports the Russian war… sure. 😂 “Independent” journalism. Independent from the independence for sure. 😂