Hungary's MVM to acquire 5% stake in Azerbaijan's Shah Deniz gas field

Hungary's state-owned MVM will acquire a 5% stake in Azerbaijan's Shah Deniz gas field, the company said in a statement, Reuters reports.

Hungary has traditionally imported natural gas from Russia, even after Russia invaded Ukraine in 2022, which forced many European countries to look for alternative sources of natural gas.

“Buying a stake in this gas field gives us protection against greater fluctuations in energy prices,” said Hungarian Foreign Minister Péter Szijjártó.

The Shah Deniz field is one of the world's largest natural gas fields, with annual production of about 29 bcm. The size of MVM's share means annual supplies of 1.5 bcm of natural gas to Hungary.

Hungary receives 4.5 bcm of natural gas per year from Russia under a 15-year agreement signed in 2021. In addition, for the first time this year, Hungary is buying 50 mcm of gas from Azerbaijan.