Hungary will increase its gas exports to Slovakia starting April

The transmission system operator FGSZ announced on Tuesday that Hungary would increase its gas export to Slovakia from 2.63 billion cubic metres per year to 3.5 bcm by April.

Hungary's decision to increase its export capacity to the north follows Ukraine refusing to renew a transit agreement with Russia, as it seeks a reduction in revenue that goes to Moscow for funding the war in Ukraine.

The expiration of this deal has stopped a major route for Russian Gas to be shipped into Slovakia and Western Europe.

Robert Fico, the Slovak prime minister, has threatened to take retaliatory actions against Kyiv. Slovakia wants to receive Russian gas via Ukraine in order to reduce costs and earn transit revenues from gas shipments going to Europe.

Analysts have stated that Hungary has increased its gas purchases and exported extra volumes last year. It has received Russian gas via Bulgaria and Serbia, through the Turkstream pipe, and increased its gas purchase in the past year.

The Hungarian pipeline operator announced on Tuesday that "the increased (gas capacity) will be offered quarterly at the respective quarterly capacities auctions on February 3", adding that this increased capacity would also be offered in each subsequent capacity auction.

Hungarian Foreign minister Peter Szijjarto stated in October that the TurkStream pipe that ships Russian gas from Ukraine to Turkey via Black Sea could assist Europe in dealing with the anticipated loss of gas through Ukraine.

Szijjarto said at the St Petersburg International Gas Forum that "this alternative route could help not only Hungary but also other countries in Central Europe." Reporting by Gergely szakacs, Krisztina than and David Gooding.

(source: Reuters)