Hungary calls for greater EU support: We need funding to move away from Russian gas

Smaller landlocked European countries are not receiving enough support to move away from dependence on Russian gas, a Hungarian energy security official says. The solution, he says, is to secure more funding for the countries concerned, Reuters reported. The question remains: what specific solutions are available?

The statement was made by Csaba Marosvári, Hungary’s deputy state secretary for energy security, who spoke at the Gastech conference in Houston. “In our region, there are small countries, small markets, few major players and a lack of capital,” Marosvári said. He added that infrastructure projects cost hundreds of millions of euros, posing a major challenge for these countries.

The reality is that Hungary still relies on Russian gas from Gazprom for around two-thirds of its needs, under a contract signed in 2021 for 4.5 billion m³ a year. By contrast, the European Union is pressing member states to diversify their energy sources. But Marosvári says adequate support for these efforts is lacking.

Marosvári said Russian supplies are reliable for Hungary under the contract, but that does not mean the country is relying on just one source. Hungary is seeking greater diversification, including alternative gas supply routes through strategic infrastructure projects.

One possible solution is cooperation with Austria, which itself imports almost 100% of its gas from Gazprom via Ukraine. Hungary should also pursue alternative supplies from Western European LNG terminals. Hungary can import up to 4.4 billion m³ of gas a year via Austria and the gas storage facilities in Baumgarten. A further 1.7 billion m³ can be imported from Romania.

Domestic production covers around 20% of Hungary’s gas demand, which would leave the country with a shortfall of around 0.6 to 0.8 billion m³ a year if Russian supplies were completely cut off. To avert a potential crisis, careful management of LNG supplies through the terminal on the island of Krk and optimization of gas flows from Western Europe, particularly from Germany, Switzerland and Italy, would be essential.

In the future, Hungary could also use the planned floating storage and regasification unit in Alexandroupolis, which is strategically connected to Greece’s national natural gas transmission system. This infrastructure would improve gas flows to southeastern Europe, including Bulgaria, Romania and Hungary.

In conclusion, Hungary is at a crossroads in its energy security, with greater independence from Russian gas remaining a key challenge. Cooperation with neighboring countries and the effective use of LNG terminals will be decisive. However, these projects will require significant financial support from the EU. Only then can they ensure stable and sustainable gas supplies for Hungary and the wider region of Central and Eastern Europe.