Hungary Signs LNG Agreement with France

Hungary Signs LNG Agreement with France

Hungary has signed its largest-ever liquefied natural gas (LNG) deal with the French energy company Engie. According to reports, the state-owned MVM CEEnergy will purchase 400 million cubic meters of LNG annually between 2028 and 2038. Statements indicate that this volume could cover around five percent of Hungary’s yearly gas consumption. With this move, the government officially seeks alternative energy routes—though it has also declared that Russian imports will remain essential for the foreseeable future.

Hungarian-Croatian Energy and Diplomatic Tensions

In recent weeks, tensions have flared between Hungary and Croatia over energy cooperation. Foreign Minister Péter Szijjártó accused Zagreb of seeking to profit from the war in Ukraine through high transit fees—an allegation firmly rejected by the Croatian government and the JANAF energy company. At the center of the dispute lie the Krk Island LNG terminal and the Adriatic oil pipeline, in which Hungary has expressed interest in acquiring a stake. Budapest’s goal is to diversify its energy supply and reduce dependence on Russian gas. However, Croatia has refused to grant a larger ownership share, maintaining that its fees are in line with market conditions. What began as an economic disagreement has thus escalated into a political issue, even as the European Union’s energy policy aims to promote regional cooperation and supply diversification.

Hungary Under Transatlantic Pressure

Hungary’s energy policy has also come under fire beyond Central Europe. U.S. President Donald Trump recently urged Hungary to completely sever its energy dependence on Russia. As reported by The Economic Times, Trump argued that a NATO ally cannot allow 80 percent of its energy consumption to be supplied by Moscow. Prime Minister Viktor Orbán has repeatedly stressed that such dependence cannot be eliminated overnight. In an interview with the Associated Press, he stated that an abrupt halt in Russian energy deliveries could cause the Hungarian economy to contract by up to four percent. According to Reuters, the annual 400 million cubic meters agreed upon with France will not replace Russian imports but represents a symbolic and strategic step toward diversification. MVM CEEnergy said the deal ensures a stable, long-term supply and aligns with Hungary’s overall energy strategy.

 Regional Contrast

At the time of the agreement, several Central European countries had already taken more drastic measures. The Czech Republic, for instance, has completely halted Russian oil imports, while Hungary continues to pursue a more gradual approach—seeking to mitigate dependence through complementary energy sources. The French LNG deal is therefore both a message and a necessity: a signal that Budapest intends to stand on multiple legs within the energy sector, while also underscoring how difficult it remains for the country to distance itself from the Russian market. The Croatian transit dispute and American pressure together continue to shape Hungary’s room for maneuver in this crucial and highly sensitive issue.