Gazprom has Started Gas Supplies to Hungary Bypassing Ukraine
OREANDA-NEWS. Since October 1, Gazprom has started gas supplies to Hungary bypassing Ukraine, through the Balkan Stream gas pipeline and pipelines of South-Eastern Europe, Russian media RIA Novosti reports. The contract signed on September 27 implies the supply of 4.5 billion cubic meters of gas to Hungary for 15 years.
According to Gazprom representatives, this agreement guarantees reliable and stable supplies for Hungary and promises diversification of routes for the supply of natural gas. The concluded contract caused discontent of the Ukrainian side. The Foreign Ministry said it was «surprised and disappointed» by Hungary's similar decision. The company «Operator of GTS Ukraine» threatened to reduce and stop the transit of gas to Hungary through Ukraine.
The price of gas in Europe at the opening of trading on October 1 updated the historical record again and was set at $1,197 per thousand cubic meters. This follows from the data of the ICE exchange. The cost of the November futures, for example, at the TTF hub in the Netherlands reached $1,101.6 per thousand cubic meters, or €91,845 per MWh. The overall increase in gas prices since the beginning of the day is currently about 5%.
Alexey Miller, Chairman of the Gazprom Management Board, said that a strong lag in gas injection into European UGS and growing demand led to the fact that prices for this type of fuel in Europe have broken a record and may still rise in the near future.