Hungarian Energy Giant Senior Talks Up Long-Term Agreement With SOCAR

(MENAFN- Trend News Agency) BAKU, Azerbaijan, June 4.​ Hungary's MVM is working toward securing a long-term contract with the State Oil Company of the Republic of Azerbaijan (SOCAR), Gábor Orbán, the CEO of MVM CEEnergy, said at the Baku Energy Forum, Trend reports.

“We are very proud to have become the first Central European trading company to purchase and physically transport Azerbaijani gas to Hungary through a pipeline. That was a short-term agreement, but we view it as a strategic partnership. We are now working on a long-term deal with SOCAR. However, without additional terms in place, it is difficult to specify the duration or timeline of the contract,” Orbán stated.

He observed that historically, MVM's longitudinal agreements conventionally extended over a duration of approximately three decades.

“Today, we have a 15-year agreement that is considered long-term. We are also exploring five-year and ten-year agreements, which fall under the same category,” Orbán added.

On 30 September 2013, MVM Hungarian Electricity Ltd. bought E.ON's natural gas storage and distribution enterprises in Hungary, subsequently establishing Hungarian Gas Trade Ltd., which has operated as MVM CEEnergy since 1 July 2021. Currently, MVM CEEnergy Zrt. stands as the preeminent natural gas broker in Hungary. The company is the principal partner of Hungarian universal natural gas service providers in the secure supply of natural gas to residential customers. MVM CEEnergy Zrt. significantly influences the end-user market and prioritizes the enhancement of its regional standing.

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