Russian gas supplies to Hungary in 2025 will be at 8-8.5 bcm, TurkStream will be used to maximum

Gas supplies from Russia to Hungary in 2025 will total between 8 billion cubic meters and 8.5 bcm, meaning the TurkStream pipeline will be utilized at maximum capacity, Hungarian Foreign Minister Peter Szijjarto told reporters, as Interfax.

Approximately 2 bcm of gas (annualized) are being supplied from Hungary to Slovakia, he said.

The capacity of the oil pipeline from Croatia is insufficient to meet Hungary's oil needs, so the country intends to maintain supplies via the Druzhba pipeline, he said.

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Nouryon Ltd. (Amsterdam and Radnor, Pennsylvania) has opened its first innovation center for oilfield applications at Houston that is expected to be fully operational in July, according to a statement by the company June 18, as per Chemweek.

The center will focus on research and development for sustainable drilling and completion, production, and stimulation processes, and will also serve as a platform for workshops and training sessions, the company said.

The innovation center is marking a “significant” expansion of the company’s capabilities and presence in the oilfield market, Nouryon said.

The company also operates innovation centers for oilfield applications at Dubai, United Arab Emirates, and Stenungsund, Sweden, it said.

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Russia's GDP grew 1.4% in Q1 2025 compared to a year earlier, according to the first official estimate published by Rosstat on Wednesday, which matched preliminary calculations, as per Interfax.

In current prices, Q1 2025 GDP amounted to 47.7468 trillion rubles, with the GDP deflator reaching 106.7% compared to Q1 2024.

As reported, Russia's GDP grew 4.5% YoY in Q4 2024, 3.3% in Q3 2024, 4.3% in Q2 2024 and 5.4% in Q1 2024. For the full year 2024, Russia's economy expanded 4.3% after growing 4.1% in 2023.

GDP growth in Q1 2025 was primarily driven by an increase in the physical volume of gross value added across the following sectors: construction - 7.3% (with the expansion of construction activity being supported by the implementation of major investment projects); manufacturing - 4.5% (production of other transport equipment - 35.8%, fabricated metal products - 18.2%, computers, electronic and optical products - 12.7%, repair and installation of machinery and equipment - 10.2%); hotels and restaurants - 6.8% (reflecting increased demand in the food service market, which grew 7.1%).

Additional positive contributions came from financial services (17.5% growth), cultural and sports activities (9.5%), telecommunications (2.8%) and agriculture (1.1%).

However, several sectors experienced declines in their physical volume index of value added during Q1 2025, including the mining sector - 4.0%; the supply of electricity, gas, steam and air conditioning - 3.8%, and real estate operations - 1.6%.

As reported, the Economic Development Ministry's baseline scenario forecasts Russia's GDP growth at 2.5% for 2025. The ministry maintained this projection from its September version in April.

The Central Bank of Russia's 2025 forecast is more conservative, at 1%-2%. Current GDP trends are developing closer to the lower bound of the CBR's projection, Central Bank Governor Elvira Nabiullina said during a briefing on June 6.

Analysts surveyed by Interfax in early June predict GDP growth of 1.5% for 2025.

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The U.S. Treasury Department has extended an exemption from sanctions for Russia's Sakhalin-2 offshore oil and gas project to allow oil exports to Japan, provision of oilfield services and transactions involving Gazprombank, including transactions involving Sakhalin Energy LLC until December 19, 2025, the department's Office of Foreign Assets Control (OFAC) said in a press release, as per Interfax.

The United States imposed a ban on provision of services related to oil production in Russia, both export and re-export of these services, on January 10, 2025, but an exemption was made for Sakhalin-2.

OFAC said the ban concerns services related to exploration, drilling, well completion, production, refining, storage, servicing, transportation, acquisition and sale of crude oil and oil products, as well as any types of activities that enable Russia to develop oil and gas fields, and maintain or expand domestic hydrocarbon production and refining.

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On Tuesday, ethylene prices rose in Northeast Asia, while remaining stable in Southeast Asia, as per Polymerupdate.

CFR North East Asia ethylene prices on Tuesday were assessed at the USD 815-825/mt levels, an increase of USD (+20/mt) from Monday's assessed levels. An industry source in Asia informed a Polymerupdate team member, "Prices rose on the back of an improved regional buying momentum."

Meanwhile, CFR South East Asia ethylene prices on Tuesday were assessed at the USD 845-855/mt levels, unchanged from Monday's assessed levels.

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