Hungary Secures Longest-Ever LNG Deal with French Firm Engie, Bolstering Energy Diversification

Historic Agreement Signed in Budapest

Hungary has officially signed its longest-ever liquefied natural gas (LNG) supply agreement with French energy giant Engie. The landmark deal, announced on Thursday, October 2, 2025, sees Hungarian state-owned natural gas wholesaler MVM CEEnergy contract with Engie Energy Marketing Singapore for a 10-year period, running from 2028 to 2038. Under the terms of the agreement, Hungary will receive 400 million cubic meters (mcm) of LNG annually, totaling 4 billion cubic meters (bcm) over the duration of the contract.

Strategic Diversification of Energy Sources

This new agreement is a significant step in Hungary's ongoing efforts to diversify its energy supply and reduce its historical reliance on Russian natural gas. The deal with Engie follows a similar long-term contract signed last month with British energy firm Shell, which will supply MVM CEEnergy with 200 mcm of gas annually for 10 years, starting in January 2026. Combined, these two agreements are set to triple Hungary's long-term LNG supply commitments. While Hungary currently consumes approximately 8 bcm of gas per year, with about 7.5 bcm supplied by Russian gas giant Gazprom last year, the Engie deal alone will cover roughly 5% of the country's annual demand, and the Shell deal an additional 2.5%.

Logistics and Political Stance

The LNG procured under the Engie contract will be shipped to regasification terminals located in Greece. From there, the natural gas will be transported to Hungary via existing pipeline networks through Bulgaria and Serbia. Hungarian Foreign Minister Péter Szijjártó announced the deal in Budapest, emphasizing its role as a 'milestone' for the country's energy security. Szijjártó reiterated Hungary's position that diversification means 'adding new sources while keeping existing ones,' rather than replacing established supply relationships. He also stressed that Hungary would not accept 'any pressure or coercion' or 'war premiums' regarding its energy supply decisions. Despite these new agreements, Hungary, along with Slovakia, has continued to oppose European Commission plans for a full ban on Russian hydrocarbon imports by the end of 2027.