Hungary in talks to buy 1bn cubic metres of Romanian Black Sea gas annually

Hungary's new government is expected to decide within weeks on signing a gas supply contract with Romania covering annual deliveries of 1bn cubic metres from the Neptun Deep offshore field in the Black Sea, Hungarian news portal Index and sources familiar with the negotiations reported on May 23.

Production at Neptun Deep is due to begin in 2027. Hungary's total annual gas consumption stands at around 9bn cubic metres, of which approximately 4.5bn cubic metres currently comes from Russia.

Romanian gas from the contract would cover 20% to 25% of the volume Hungary will need to replace when the EU's REPowerEU programme bans purchases of Russian energy from October 2027.

Sources said the agreed price for Romanian gas was already comparable to Russian levels.

The process has been complicated by political transitions in both capitals. Romanian legislation grants the state a right of first refusal on strategic deals, and the Romanian caretaker government said it intended to exercise that right but lacked the authority to take a final decision.

A seven-day deadline for a response expired on May 15, after which Romania requested an extension to mid-June.

The Hungarian side has completed its contract preparations, with state energy company MVM having received all necessary approvals since March, according to the sources.

Hungarian Prime Minister Péter Magyar said the EU would resume purchases of Russian gas after the end of the Ukrainian conflict and that Hungary supported energy diversification but had to consider fuel costs.

He said liquefied natural gas routed via the Baltic Sea, Poland and Slovakia carried a significantly higher price than gas from Russia, Romania and Austria.