Hungary Secures Stake in Azerbaijan's Shah Deniz Gas Field for Energy Stability

Hungary will acquire a stake in Azerbaijan's Shah Deniz gas field, one of the world's largest, to diversify its energy sources and reduce dependence on Russian gas. This strategic move aims to enhance Hungary's energy security and price stability, with an initial import of 50 million cubic metres of gas in 2023.


Reuters | Updated: 05-06-2024 17:03 IST | Created: 05-06-2024 17:03 IST
Hungary Secures Stake in Azerbaijan's Shah Deniz Gas Field for Energy Stability
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Hungary will buy a stake in Azerbaijan's Shah Deniz gas field, one of the largest in the world, Hungarian Foreign Minister Peter Szijjarto told a briefing on Wednesday in Baku.

Hungary, a landlocked country, has been covering its natural gas imports mainly from Russia even after its invasion of Ukraine in 2022. Acquiring a stake in this gas field "gives us (Hungary) a protection from big energy price swings," Szijjarto said.

"As Azerbaijan is a new player in our energy supply, this situation gives us a much more stable energy supply, much more security of energy supply." Hungary is also buying 50 mln cubic metres of natural gas this year from Azerbaijan for the first time, Szijjarto added.

The Hungarian government's international spokesperson said on social media platform X after the announcement that acquiring the stake in the gas field "secures a significant portion of Hungary's gas needs". The government did not reply immediately to Reuters questions seeking more detail.

The Shah Deniz field is one of the world's largest natural gas fields, with an annual production of nearly 30 billion cubic metres, Szijjarto said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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