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Hungary extends gas supply contract with Russia's Gazprom

Hungary and Russia have agreed to extend a long-term gas supply agreement which was due to expire in October 2021. Hungary, which imported 8.6 bcm of Russian gas in 2020 (-18%), is expected to import 6.2 bcm in 2021. A 15 km gas pipeline between Hungary and Serbia, with a capacity of 6 bcm/year, is scheduled to be completed by October 2021 and will enable Hungary to receive Russian gas through the Turkstream gas pipeline.

In January 2020, Russia and Turkey officially commissioned the 31.5 bcm/year TurkStream gas pipeline stretching 930 km across the Black Sea and that will supply 15.75 bcm/year to Turkey and 15.75 bcm/year to Bulgaria, Serbia and Hungary. Russian gas is now brought via Bulgaria's national gas transmission system to Serbia, where it is distributed among consumers in Serbia and in Bosnia and Herzegovina. Gazprom started to export natural gas to Serbia and Bosnia and Herzegovina through the TurkStream gas pipeline in January 2021.