MOL seeks release of strategic oil reserves after suspension of Druzhba supplies, expects supplies via Adriatic pipeline

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MOL seeks release of strategic oil reserves after suspension of Druzhba supplies, expects supplies via Adriatic pipeline

MOSCOW. Feb 17 (Interfax) - Hungarian oil and gas company MOL Group said it has asked Hungary's Energy Ministry to release strategic oil reserves because crude supplies through the Druzhba pipeline from Russia have been suspended since January 27.

Oil supplies through Druzhba to Slovakia have also been suspended since then, the company said in a press release.

"To make up for the shortfall, MOL has started supplying its refineries with seaborne crude oil. Due to the longer transit times involved in maritime transport, this supply route is being established gradually: the first shipments are expected to arrive at the port of Omisalj in Croatia in early March, from where it will take a further 5-12 days for the crude oil to reach the MOL Group's refineries," the company said.

"If shipments from the east do not resume in the coming days, Hungary may need to release approximately 250,000 tons of strategic crude oil reserves in the first round. To this end, MOL has approached the Hungarian Ministry of Energy, initiating the release of strategic crude oil reserves," the company said.

"In Slovakia, close contact is also being maintained with the Slovak government to ensure that the country can respond quickly to the situation. In both countries, in accordance with European Union regulations, there are sufficient crude oil reserves for approximately 90 days," MOL said.

"The current situation does not threaten fuel supplies: the market is being served without disruption, and MOL continues to operate within the framework of normal business," the company added.

Hungary and Slovakia earlier asked Croatia to arrange supplies of Russian oil through the Adria pipeline system, which carries crude from the Adriatic port of Omisalj to refineries in Croatia and other countries in Southeastern and Central Europe. The 630-km system, which is operated by Croatia's JANAF, has capacity to transport 34 million tonnes of oil per year.