Hungarian state-owned energy group MVM acquired a 5% stake in the Shah Deniz Compression (SDC) project in Azerbaijan, joining a $2.9 billion development consortium led by BP, according to bne IntelliNews.
This investment significantly expands Hungary’s presence in the Caspian energy sector, where compatriot firm MOL is already active. The final investment decision was announced during Baku Energy Week, highlighting Azerbaijan’s strategic role in European energy diversification amid efforts to reduce reliance on Russian gas.
The SDC initiative aims to extend the Shah Deniz field’s operational life by accessing low-pressure gas reserves, projecting an additional 50 billion cubic metres (bcm) of gas and 25 million barrels of condensate for export. The consortium includes BP (29.99% and operator), Russia’s Lukoil, Turkey’s TPAO, Azerbaijan’s SGC, Canada’s NICO, and Hungary’s MVM.
MVM CEEnergy CEO Gábor Orbán emphasised Azerbaijan’s importance as a “strategic partner,” noting that while MVM pioneered Azerbaijani gas deliveries to Hungary via pipeline, “physical constraints remain a barrier to scaling up imports.”
Orbán called for substantial upgrades to the Southern Gas Corridor, including doubling the Trans-Adriatic Pipeline’s capacity to 20 bcm and enhancing interconnectors between Bulgaria, Serbia, and Hungary. The 5% stake enables Hungary to receive 1–1.5 bcm annually from Shah Deniz, contributing to what Orbán termed “gradual decoupling from Russian imports.”
The investment aligns with Hungary’s broader energy diplomacy following MVM’s robust 2024 performance. Despite falling energy prices reducing revenues from HUF5.08 trillion to HUF4.53 trillion, MVM posted a net profit of HUF324 billion (€800 million). The Shah Deniz stake reinforces Budapest’s strategy to diversify gas sources while strengthening Central Europe’s energy resilience.
