Hungary emerges as a regional gas hub amid rising cross-border flows

Hungary’s natural gas sector is undergoing a structural shift, moving beyond its traditional role as a consumption market and increasingly acting as a regional gateway for gas flows. A new analysis by the Oeconomus Economic Research Foundation highlights a sharp rise in both cross-border imports and exports, reinforcing the country’s position as a transit and distribution center in central and southeastern Europe.

Domestic production continues to support this transformation. In 2025, Hungary produced more than 1.6 billion cubic meters of natural gas. While this represented a modest decline compared to 2024, output remained slightly above 2023 levels. Local production covered just under one-fifth of national gas demand, providing a stable but limited contribution to overall supply.

The most striking changes were on the import side. Total gas inflows climbed to 12.4 billion cubic meters in 2025, marking a 25 % increase year-on-year. Rising domestic consumption and expanding export activity drove the growth, requiring higher volumes to flow through the system. Hungary’s import portfolio also became more diverse: while gas via Serbia (TurkStream) remained dominant, its share declined noticeably. Supplies from Austria surged, transforming a marginal source into one of the main entry points. Imports from Romania and Croatia declined, and no gas entered from Ukraine or Slovakia. Average daily imports rose significantly, reflecting the overall expansion in traded volumes.

Exports increased even faster. Deliveries to neighboring countries jumped by more than 25 % compared with 2024, with Ukraine as the primary destination. Over half of Hungary’s exported gas flowed eastward, helping Ukraine offset supply disruptions from damaged Russian infrastructure. These shipments alone covered an estimated 14 % of Ukraine’s annual gas needs. Slovakia ranked second, with smaller volumes sent to Serbia, Croatia, and Romania. Daily exports averaged around 16 million cubic meters.

Diversification has become central to Hungary’s gas policy. Long-term procurement agreements signed in 2025 will broaden supply options. A ten-year contract with Shell Energy brings 200 million cubic meters of LNG annually starting in 2026 via Croatia or Austria. A deal with French Engie secures 400 million cubic meters per year between 2028 and 2038, while a framework agreement with SOCAR (Azerbaijan) allows up to 800 million cubic meters over two years, delivered via Serbia and the Turkish pipeline network.

Infrastructure upgrades have reinforced these commercial moves. Pipeline capacity expansions in 2025 increased system flexibility and bidirectional flow potential. At the Romanian border point of Csanadpalota, technical adjustments lifted hourly transfer capacity, while the interconnection with Slovakia at Balassagyarmat–Veľke Zlievce was upgraded for higher annual exports.

Taken together, these developments highlight a broader transformation of Hungary’s gas market. Rising cross-border flows, new supply contracts, and targeted infrastructure investments are reshaping the country into a key regional node, linking multiple supply routes with growing demand across central and eastern Europe.

Scroll to Top