According to Minister of State János Lázár, the Government’s objective is to ensure energy security within the Hungarian natural gas market. At a press briefing, the Minister of State heading the Prime Minister’s Office stated that to his knowledge negotiations have reached an advanced stage with the German energy company E.ON regarding the repurchase of its subsidiary in Hungary, a measure that also serves the strengthening of energy security. Only in this way can gas prices paid by citizens be kept under control and at realistic levels, otherwise gas prices will become disproportionately high in Hungary, he added.

Hungary would become more vulnerable if such a capacity were to fall out of the state’s interest, he stated, adding that today in Hungary a strategic natural gas storage unit can change owners without the government being able to do anything about it. The proposal, submitted to Parliament by Minister of State Lázár last week, would grant the state, if it is able, the right to purchase the ownership share. This essential, since 80% of Hungary’s population uses gas heating.

The proposal also suggests that if a company operating such a unit offers its shares for sale, the state would have pre-emptive rights. If a storage unit is built through non-state investment, then the investor would be obliged to sell it to the state on the day it is put into commission.

In answer to the question if it will be possible to negotiate with MOL following the repurchase of E.ON’s subsidiary, the Minister of State said that MOL is a commercial company and the Government’s opinion is that the state must play a central role in the gas sector. One of the key issues in coming years will be the long-term gas transport contracts which will expire in 2015, he said.

E.ON purchased majority ownership in MOL’s natural gas business in 2005 for 2.1 billion euros. In 2011, E.ON’s revenues from the Hungarian natural gas sector reached 1.95 billion euros. The Hungarian Government has obtained an option to repurchase E.ON's stake in the company, which will expire in 2016.

(Prime Minister’s Office)