Ukraine will create strategic fuel reserves in Hungary

Naftogaz Group and Hungarian energy company MOL have agreed to create storage facilities for petroleum products in Hungary near the Ukrainian border. The future storage facilities will be used to meet the needs of the Ukrainian fuel market.

The parties signed a relevant memorandum on September 20 during the first Carpathian Eight Summit. The document provides for joint development of the project and its further implementation.

One of the project's tasks is to move part of the reserve capacity outside the territory that regularly suffers Russian strikes. This should simultaneously increase the resilience of the fuel storage system and diversify routes for fuel supply to Ukraine.

"In conditions of constant Russian attacks on our fuel infrastructure, diversifying supply routes and creating additional storage capacity outside the shelling zone is a matter of stability for the entire market", said acting chairman of the board of Naftogaz Serhiy Fedorenko.

According to him, the implementation of the project should increase the reliability of fuel supply to Ukrainian consumers, as well as contribute to the development of cross-border energy infrastructure between Ukraine and Hungary.

Currently, the parties have not announced the volume of future storage facilities, construction cost, or commissioning terms. The memorandum provides specifically for joint development and potential implementation of the project, so final parameters still need to be determined.

Based on materials from: "Naftogaz of Ukraine".