Security of supply

FGSZ is an important participant of gas supply in Hungary. In Europe, it is the task of the transmission system operators to develop and maintain the pipeline infrastructure. Beside this, the primary goal of the system operators is to safely and eficiently operate the system, to make the transmission service affordable, and to provide transparent and non-discriminatory access top epeline capacities to all entitled market participants, all this witióhin the framework of the EU and domestic regulation.

In the vertical energy system, natural gas cannot be replaced today or tomorrow, hence it is especially important to guarantee the security of supply to domestic consumers.

Since only around 20% of Hungary’s supply is covered by domestic extraction, it is of strategic interest to guarantee international import through coordination with neighbouring countries in order to warrant security of supply. Security-of-supply-related measures and regulations introduced by the EU aim at optimising connections of the missing infrastructure, supporting cooperation among member states, and maintaining a market-driven approach. Gas crises of 2006 and 2009 significantly affected in Hungary too, causing serious damages in a number of economic sectors. Hence, concerned member states – with the support of the EU – have begun major infrastructure developments. During the time that has passed since the gas crises, the natural gas infrasructure of Hungary – regarding both natural gas storage capacity (covering the annual consumption of the country up to even 60%) and the new interconnector infrastructure securing connection with gas markets of other countries – has undergone significant development. We may state that domestic and regional gas market and infrastructure is a lot more prepared and resistant to possible future supply shocks (similar to the earlier gas crises).

Besides, regional countries and the EU have taken important steps to reduce energy dependence and to secure a diversified supply. The quickly expanding, flexible LNG market has made natural gas a generally accessible commodity. From this flexibility – indirectly though – CEE countries profit through international infrastructure connections, the basis of natural gas market. These connections enable a competition between different gas sources and transmission routes. This market competition is an assurance for uninterrupted natural gas supply and for affordable natural gas. All these steps have been efficiently improving the security of supply in the CEE region.