Hungary has filled up its gas storage facilities to full capacity which not only guarantees domestic supplies but allows the country to store gas for others, Minister of Foreign Affairs and Trade Peter Szijjarto said on October 2 after talks in Moscow with Gazprom deputy-CEO Elena Burmistrova.

Hungary's top diplomat was attending the international forum Russian Energy Week. Gazprom earlier agreed to top up Hungary's gas reserves with deliveries it will use only from next year because of uncertainty surrounding a transit contract between Moscow and Ukraine. 

Hungary gets most of its Russian gas via Ukraine. Gazprom is also paying Hungary to store 0.9bn cubic metres (bcm) of gas for delivery to countries in the south and the west of Europe, 

"We have also reached an agreement to start negotiations on gas supply for the 2020-2021 period with Russia," Szijjarto said, adding that now Hungary is in a position to plan 18 months ahead.

Gazprom is working with Bulgaria and Serbia to bring gas delivered through the Turkish Stream pipeline - to extend from Russia across the Black Sea to Turkey - as far as Hungary and Austria.

As Hungary's long-term gas contract with Gazprom will expire in 2021, Budapest is looking to diversify its import sources to reduce dependency on Russian gas coming from the Friendship pipeline from Ukraine.

Besides establishing two-way interconnectors with its neighbours, it seeking alternative sources as ballast to leverage lower prices from Gazprom.

Hungary will announce a capacity allocation tender for Russian gas to be transported from Bulgaria and Serbia on October 31, once Hungary receives guarantees from the Bulgarian authorities on quality, Szijjarto said. This would allow the delivery of some 10 bcm of gas from Serbia, which is roughly the country’s annual need.

Szijjarto meets Rosatom CEO

Commenting on his meeting with Rosatom's CEO Alexei Lihakov, Szijjarto said the sides had approved the technical plan for the upgrade of the Paks nuclear power plant.

State-owned Rosatom was selected to add two blocks to the Paks nuclear plant in 2014. The largest-ever investment in Hungary valued €12.5bn, would increase capacity by 2,400Mw. Russia is providing €10bn financing for the project.

Rosatom has so far failed to secure a final permit for the construction of the plant. The new blocks were supposed to start operation in 2025-2026, but that deadline will certainly be missed by at least two-years.

Szijjarto said the 300,000-page development license will be submitted to the licensing authority for approval next summer.