Naftogaz, MOL Partner to Build Fuel Storage Near Hungarian Border

Ukrainian national oil and gas company Naftogaz and Hungarian energy group MOL Downstream signed a memorandum of understanding on Sunday, Sept. 20, to construct refined petroleum storage facilities in Hungary near the Ukrainian border.

Finalized on the sidelines of the inaugural summit of the “Carpathian Eight” regional cooperation format, the agreement establishes a framework for the joint evaluation and development of dedicated fuel storage infrastructure engineered specifically to supply the Ukrainian domestic market.

Naftogaz Acting Chairman of the Board Serhiy Fedorenko stated that establishing strategic reserves outside Ukrainian territory is vital to insulating national fuel supplies from persistent Russian missile and drone bombardments.

“Under conditions of persistent Russian attacks on our fuel infrastructure, diversifying supply routes and creating additional storage capacities outside the bombardment zone is a matter of stability for the entire market,” Fedorenko said.

“The realization of this joint project will not only improve the reliability of fuel supplies for Ukrainian consumers in the long term, but also foster the mutually beneficial development of cross-border energy infrastructure between Ukraine and Hungary.”

Winter energy resilience

The cross-border storage project forms part of a broader Ukrainian strategy to reinforce national energy resilience ahead of the autumn and winter heating season.

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Speaking at the 22nd Annual Meeting of the Yalta European Strategy (YES 2026) in Kyiv, Prime Minister Serhiy Koretskyi noted that while fully defending every individual asset remains unfeasible, Ukraine is considerably better positioned to endure winter attacks than in previous years.

Koretskyi emphasized that the government’s operational focus centers on the decentralization of critical energy, heating, and water supply networks across municipalities to prevent concentrated strikes from causing systemic power collapses.

The prime minister affirmed that Ukraine possesses the necessary reserves and contingency protocols to maintain stability despite escalating strikes.

Ukraine accumulated its baseline winter natural gas storage target a month ahead of schedule, with domestic underground storage facilities reaching 14.6 billion cubic meters by late August through coordinated operations involving Naftogaz, the Gas Transmission System Operator of Ukraine (GTSOU), and domestic extraction enterprises.

Concurrently, municipal utilities completed winterization procedures for roughly 100,000 residential buildings, 12,400 local boiler facilities, and 11,700 kilometers of district heating pipelines, supported by state allocations of Hr 6.8 billion ($152 million) for backup power generation and physical barrier defenses.