Hungary has taken a significant step toward diversifying its energy imports by signing a long-term liquefied natural gas (LNG) supply agreement with a US supplier. State-owned utility MVM has concluded a five-year contract with Chevron, marking the first time American LNG will enter Hungary’s energy portfolio on a regular basis.
Under the agreement, 400 million cubic meters of LNG per year will be delivered to Hungary, amounting to 2 billion cubic meters over the full contract period. According to Foreign Affairs and Trade Minister Péter Szijjártó, the deal substantially strengthens national energy security by introducing a completely new supply source and transport route.
The Hungarian Government views supply diversification as essential for maintaining low energy prices and preserving its household utility cost reduction policy. Minister Szijjártó emphasized that sourcing energy from multiple countries and transit corridors improves bargaining power, stabilizes prices and shields consumers from market volatility, supporting both households and the broader economy.
At the same time, he drew a sharp contrast between Washington’s supportive stance and that of Brussels, arguing that EU institutions aim to limit certain energy sources and routes that are strategically important for Hungary. He warned that such restrictions could increase uncertainty and drive prices higher, contributing to ongoing disputes with the European Commission over energy policy.
Beyond gas, Hungary is also deepening cooperation with the United States in the nuclear sector. The Government plans to extend the operational life of the Paks nuclear power plant and construct two new reactors, which will significantly increase demand for nuclear fuel.
To meet this future demand, Hungary has signed an agreement with Westinghouse to introduce US-supplied nuclear fuel from 2028–2029. In addition, the two countries have reached understandings on the safe and environmentally responsible storage of spent nuclear fuel, as well as on the potential deployment of small modular reactors (SMRs) in Hungary using US technology.
