Uncertainty Looms Over Adriatic Pipeline Capacity Amid Russian Oil Concerns
A dispute between Hungarian oil company MOL and Croatian operator Janaf has cast doubt on the Adriatic pipeline’s potential to handle the oil needs of Hungary and Slovakia, which remain heavily dependent on Russian crude supplied through the Druzhba pipeline.
MOL said on Wednesday, Sept. 24, that recent tests conducted with Janaf had not verified the pipeline's ability to supply enough oil to its refineries in Hungary and Slovakia.
The company stated that during a test last week, the pipeline was unable to maintain sufficient capacity for more than two hours due to technical issues. The total capacity of MOL's two main refineries is 14.2 million tonnes, a significant portion of which is currently supplied by Russia's cheaper Ural crude.
Janaf, however, strongly rejected MOL's claims. In a statement, the Croatian operator said it was "prepared, be it in technical, organizational or any other terms, to cover MOL Group's Hungarian and Slovakian refineries' total annual demands for crude oil."
The company alleged that during a test from Sept. 22-24, a reduced flow was requested directly by MOL, and there were no obstacles on Janaf's part to achieving the planned flow.
The disagreement over the pipeline's capacity is unfolding as the EU considers new trade restrictions that could reduce or completely halt Russian oil deliveries to Eastern Europe.
According to a Bloomberg report published on September 20, the move would not be subject to a veto from Hungary or Slovakia since it is adopted at the level of national governments without requiring unanimous approval.
In the past, the two nations have resisted EU efforts to phase out Russian energy imports through sanctions, allowing them to import a significant amount of Russian oil, as other countries, such as Germany, are gradually phasing out Russian energy imports.