Hungarian MOL searches for alternatives after halt of Russian crude deliveries: Adria capacity tests may start soon

Hungarian oil and gas company MOL and Croatia’s Janaf have agreed to start long-term capacity tests on the Adria crude pipeline with the involvement of an independent, international observer, MOL said on Wednesday.

The tests aim to determine whether Janaf’s pipeline is capable of a sufficient volume of continuous all-weather deliveries, MOL said accordig to the Hungarian News Agency, adding that while the Croatian side had put the Adria’s annual capacity at 11-15 million tonnes, more than 2 million had never been delivered to Hungary.

MOL said it was still waiting for a response from Janaf on allowing through seaborne deliveries of Russian crude, adding that Janaf had asked for time to analyse rules regarding the European Union’s sanctions on Russia. Janaf also asked MOL to acquire EU and United States permits clearing the deliveries, a request MOL said was “unrealistic” and posed an “unjustified bureaucratic obstacle”.

MOL: Hungary’s primary crude route remains to be the Druzhba pipeline

MOL noted that the sanction rules stipulate that deliveries of Russian crude must be allowed through as long as the Druzhba pipeline, Hungary’s primary route for getting oil, is not operating.

MOL said Janaf’s delivery fees were 4-5 times the European average, “raising suspicion of an abuse of a monopoly position”.

MOL reiterated that supply security in the region required the operation of two commercially competitive pipelines: the Adria and the Druzhba. MOL added that it supported Ukrainian efforts to connect the Druzhba with the Black sea by restarting the Odesa-Brody pipeline.

If you missed our previous articles concerning the Russian crude delivery crisis:

• Hungary deprived of Russian crude for a month as Ukraine announces fresh postponement – how long will we endure?
• Hungary orders Russian oil shipments by sea as Druzhba pipeline remains offline
• Polish presidential adviser claims halting Russian oil transit to Hungary is due to Brussels-Kyiv pact

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