Hungarian Refiner Looks to Croatia as Alternative to Druzhba Supplies

Hungarian refiner Mol is in talks to use Croatia’s oil pipeline network as alternative to Russian Druzhba supplies according to a senior executive late last week.

• Mol is looking for a long-term agreement although volumes may not be sufficient and there is no current agreement on pricing.
• “Our intention at the moment is to clearly develop the alternative possibilities,” said executive Peter Ratatics. “In a conflict zone, how long can you have a stable supply in a pipeline that’s always in danger?”
• Hungary is still reliant on crude supplies via the Druzhba pipeline. The only alternative supply for Mol is oil transported by Croatia’s Jadranski Naftovod DD, known as Janaf.
• In January Janaf signed a deal with Mol until 31 March to transport 500k tons of crude and store nearly 150k cubic meters of oil at its terminals.