Hungary ready to expand bilateral energy cooperation with Türkiye, says envoy

By Firdevs Yuksel and Handan Kazanci

ANKARA (AA) - Hungary is keen to expand bilateral energy cooperation with Ankara, recognizing the crucial role Türkiye's natural gas supply plays in bolstering its energy security, the Hungarian envoy in Ankara told Anadolu.

Ambassador Viktor Matis said the bilateral agreement between Türkiye and Hungary "is a good start," referring to a 2023 deal between Turkish Petroleum Pipeline Corporation (BOTAS) and the Hungarian MVM CEEnergy company under which Ankara began exporting natural gas to Budapest.

"We are ready to continue cooperation in natural gas. This could be gas known as 'Turkish Blend' or LNG," Matis said.

Turkish Energy and Natural Resources Minister Alparslan Bayraktar met with Peter Szijjarto, Hungarian minister of foreign affairs and trade, during the St. Petersburg International Gas Forum in Russia on Thursday.

Following the meeting, Bayraktar said on X: "We reiterated our commitment to maintaining and expanding our successful natural gas exports to Hungary in the near future."

- Türkiye crucial in ensuring Hungary's energy security

As this year marks the centennial of the Turkish-Hungarian Friendship Treaty, Matis underscored the strong foundation of the countries' relationship, rooted in the 1923 agreement and elevated to a strategic partnership in 2013.

He recalled the further enhancement of this partnership to an "enhanced strategic partnership" last year, encompassing cooperation across all sectors.

Highlighting the important energy agreements signed between Ankara and Budapest last year, Matis said: "2023-2024 have been the most active years in our energy sector over the past decade."

"Under the 2023 agreement, we directly purchased natural gas from Türkiye in the first months of 2024, making us the first country outside of Türkiye's border neighbors to do so," he added.

The Hungarian ambassador also highlighted Türkiye's crucial role in ensuring Hungary's energy security amid the Russia-Ukraine war.

"Türkiye is now the most important transit route for our energy security due to the Russia-Ukraine war," he said.

Matis said Hungary needs to acquire natural gas from other places, either in the form of LNG or natural gas.

- Cooperation on nuclear, renewables

Highlighting a potential for cooperation in nuclear energy, Matis said that Hungary's Paks Nuclear Power Plant shares the same technical specifications as Türkiye's Akkuyu Nuclear Power Plant which is currently under construction.

Matis emphasized Hungary's extensive experience in operating nuclear power plants, expressing a willingness to share knowledge and expertise with its Turkish counterparts.

"Türkiye is rapidly advancing in the construction of Akkuyu and there are opportunities for collaboration in that as well. Both sides are engaged in direct talks on these matters," he added.

The ambassador highlighted the importance of renewable energy sources, such as geothermal and solar power, for Hungary.

Companies are engaged in direct discussions in these areas, he said, adding: "Turkish companies are active in Hungary's renewable energy sector and are performing exceptionally well."

The ambassador highlighted the significant growth in bilateral trade between Türkiye and Hungary, from $2 billion in 2013 to approximately $4.3 billion in 2023.

Regarding the new target set for bilateral trade volume, Matis said: "While our current goal is $6 billion, the specific figure is less important than the ongoing momentum."

He emphasized that reaching $6 billion in bilateral trade is merely a stepping stone.

He expressed the ambition to further elevate the economic relationship, aiming to achieve a trade volume of $10 billion and strengthening the collaboration even further.

Matis emphasized that both countries are committed to maintaining this momentum, noting that new infrastructure has been established to support growth, including the launch of a Turkish public bank in Hungary and visa assistance for Turkish entrepreneurs.

- Joint ventures in third countries

Citing a February meeting of the Türkiye-Hungary Economy and Trade Joint Committee, Matis emphasized its unique focus on direct engagement between top executives from leading Turkish and Hungarian companies.

"At this year's meeting, we focused on connecting these general managers, facilitating valuable interactions among key players across various industries," he said.

The ambassador emphasized the continuation of these meetings and the expansion of existing energy cooperation, highlighting the successful collaboration between BOTAS and Hungary's state-owned energy group MVM, as well as Hungarian oil and gas company, MOL and Turkish Petroleum Corporation (TPAO).

He also noted the potential for joint ventures with partner companies in third countries.

Matis also noted that Turkish companies have a strong presence in Hungary's energy sector, with leading players like Enerjisa and Polat Enerji making significant contributions to the country's energy supply.

"We actively support Turkish companies considering investments in Hungary," he said, adding they are working closely with the Hungarian Investment Promotion Agency to offer support and facilitate their entry into the Hungarian market.