Hungary, Country honors gas supply agreement with Russia

, SEE Energy News

Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto said that the country honors gas supply agreement with Russia and it is not planning to call off the project for the expansion of nuclear power plant Paks, developed in cooperation with Russian Rosatom.

Minister Szijjarto remarked the statements of opposition leaders who called for the cancellation of NPP Paks expansion project due to Russian invasion on Ukraine, pointing out that in case the two new reactors are not built, Hungary will face significant increase in energy prices in the futures. He added that the Government will not allow Hungarian people to suffer over the war in other country.

He also said that Hungary cannot terminate gas supply contract signed with Russian Gazprom in 2021, which envisages the supply of 4.5 billion cubic meters of gas per year through new route via Turkey, Bulgaria and Serbia, bypassing Ukraine. Last month, during his official visit to Moscow, Prime Minister Viktor Orban sought the increase in Russian gas supply by additional one billion cubic meters per year.

In January 2014, Hungarian Government has signed deal with Russia`s Rosatom, with a goal to increase output of the power plant, from current 2,000 MW to 4,400 MW by adding two more reactors. Under the agreement, Russia will provide 10 billion euros loan for the construction of new unit in existing NPP, which is around 80 % of estimated construction cost. According to initial plan, first unit was supposed to become operational in 2023.

Currently, NPP Paks provides about a half of Hungary’s total electricity generation and the new nuclear capacity will be even more significant following the closure of coal-fired TPP Matra.