Hungary Sees TurkStream as Vital Alternative Amidst Ukraine Gas Transit Uncertainty

Hungary Sees TurkStream as Vital Alternative Amidst Ukraine Gas Transit Uncertainty

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The recent declaration by Peter Szijjarto, Hungary’s Foreign Minister, at the St. Petersburg International Gas Forum highlights the strategic importance of the TurkStream pipeline. This pipeline, linking Russia to Turkey via the Black Sea, could become a pillar for gas supplies to Central Europe if gas transit through Ukraine ceases, expected on December 31, 2024. This scenario could become a reality given the persistent military tensions between Ukraine and Russia, making the renewal of the existing transit agreement unlikely.

In the current context, where Hungary already relies on gas deliveries via TurkStream, Szijjarto affirmed that this alternative could also support other countries in the region facing supply difficulties. Indeed, Hungary, unlike many European Union countries, maintains close relations with Moscow, seeking to strengthen its economic and energy ties with Russia, which raises questions about energy diversification within the EU.

Importance of the TurkStream Pipeline

The current transit agreement between Russia and Ukraine allows for the delivery of approximately 15 billion cubic meters (bcm) of gas per year to Europe, representing nearly 8% of peak volumes transiting to the continent in 2018-2019. The end of this agreement could exacerbate energy tensions, particularly in Central European countries where energy security is already a major concern. Hungary has already taken measures to secure its gas needs by increasing its contracts with Gazprom, the Russian energy giant.

Hungary’s Position in the EU

While most EU member states are striving to reduce their dependence on Russian gas, Hungary stands out for its willingness to maintain close trade relations with Russia. Prime Minister Viktor Orbán has blocked several EU initiatives aimed at further restricting energy imports from Russia. This strategy highlights a growing rift between Budapest and other European capitals, intensifying tensions within the Union.

Hungary has also signed an addendum to its gas contract with Gazprom for the year 2024, providing for a total volume of 6.7 bcm, which could suffice not only for Hungary’s needs but also for those of other Central European countries if deliveries via Ukraine are interrupted.

Geopolitical Consequences and Future Perspectives

The energy situation in Central Europe underscores the necessity for diversifying supply sources. If transit via Ukraine ends, Turkey could become a key player, strengthening its position as an energy hub. However, this increased dependence on TurkStream also raises concerns about geopolitical stability, as Russia could use this lever to exert pressure on Europe.

In the long term, European countries will need to consider alternatives to secure their energy supplies. This includes developing liquefied natural gas (LNG) infrastructures and improving interconnections with other gas sources, such as those from Azerbaijan. However, implementing these solutions will require time and significant investments, leaving countries like Hungary vulnerable to Russia’s energy policy.

The next steps for Central Europe will involve assessing the viability of these alternatives while navigating a complex and constantly evolving energy landscape.

Halliburton and Aker BP have completed the first umbilical-less tubing hanger installation on the Norwegian continental shelf, paving the way for digitised offshore operations with reduced infrastructure.
The US group has finalised operations at the Begonia field, marking its first offshore deepwater intervention in Angola’s Block 17/06, located 150 kilometres off the coast.
Prolonged attacks on fuel convoys have depleted stocks, destabilised power generation and disrupted economic activity in Bamako and surrounding regions.
Nigerian group Dangote has reduced crude supply to its refinery, citing a strategic adjustment to high oil prices and denying any technical failure.
Reliance Industries reported a 9.67% increase in net profit in the second quarter of fiscal year 2025–2026, driven by recovering petrochemical margins and continued growth in its retail and telecom operations.
An operational fire was contained at the largest refinery in the US Midwest, causing a temporary shutdown of several processing units, according to industry data.
The European Commission imposes new rules requiring proof of refined crude origin and excludes the use of mass-balancing to circumvent the Russian oil ban.
The Dutch Supreme Court has rejected Russia's final appeal, confirming a record $50bn compensation to former Yukos shareholders, ending two decades of legal battle.
A ruling by Namibia's High Court upheld the media regulator’s decision that the state broadcaster NBC failed to ensure balance in its coverage of ReconAfrica’s oil operations.
The Canadian oilfield services provider announced a $75mn private placement of 6.875% senior unsecured notes to refinance bank debt and support operations.
Commercial crude reserves in the United States posted an unexpected increase, reaching their highest level in over a month due to a marked slowdown in refinery activity.
Beijing calls Donald Trump's request to stop importing Russian crude interference, denouncing economic coercion and defending what it calls legitimate trade with Moscow.
India faces mounting pressure from the United States over its purchases of Russian oil, as Donald Trump claims Prime Minister Narendra Modi pledged to halt them.
Three Crown Petroleum has started production from its Irvine 1NH well and plans two new wells in Wyoming, marking a notable acceleration of its deployment programme in the Powder River Basin through 2026.
The International Monetary Fund expects oil prices to weaken due to sluggish global demand growth and the impact of US trade policies.
With lawsuits multiplying against oil majors, Republican lawmakers are seeking to establish federal immunity to block legal actions tied to environmental damage.
The United Kingdom targets two Russian oil majors, Asian ports and dozens of vessels in a new wave of sanctions aimed at disrupting Moscow's hydrocarbon exports.
Major global oil traders anticipate a continued decline in Brent prices, citing the fading geopolitical premium and rising supply, particularly from non-OPEC producers.
Canadian company Petro-Victory Energy Corp. has secured a $300,000 unsecured loan at a 14% annual rate, including 600,000 warrants granted to a lender connected to its board of directors.
Cenovus Energy has purchased over 21.7 million common shares of MEG Energy, representing 8.5% of its capital, as part of its ongoing acquisition strategy in Canada.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.