MOL warns of fuel delivery disruptions to Czechia

The head of MOL’s Czech subsidiary has warned of potential disruptions to fuel deliveries following the expiry of the EU's exemption on the import of Russian oil-derived products in early December, according to a report by Hungarian news agency MTI on October 19.

In a statement to the CTK news agency, CEO of MOL CR, Lubos Dinka, expressed uncertainty about the company's ability to supply non-Russian oil-derived products to the Czech market in sufficient quantities once the exemption ends on December 5.

Meanwhile, Orlen Unipetrol, the sole oil refinery in Czechia, assured that it has secured adequate oil supplies to maintain production continuity. If necessary, Orlen is prepared to redirect fuel intended for export to meet domestic demand, ensuring uninterrupted supply.

Czech officials have long sought to end the country’s reliance on Russian oil imports by expanding the capacity of the Transalpine Pipeline (TAL), which transports oil from the Port of Trieste to refineries in Central Europe. The pipeline’s capacity is set to double from 4mn cubic metres (mcm) to 8 mcm per year. Oil would then be transported to Czech refineries via the Ingolstadt-Kralupy nad Vltavou (IKL) pipeline, constructed in the late 1990s.

Last year, 58% of Czechia’s 7.4 mcm of oil imports came from Russia via the Druzhba pipeline, with the rest delivered through the IKL pipeline.

However, Dinka expressed doubts about the timely completion of the TAL expansion, citing that no project of this scale has ever finished on schedule. He warned of a potential delay of several months.

MOL also emphasised that Czechia is not self-sufficient in fuel production. Around 15-20% of its fuel is supplied by MOL’s Slovnaft refinery in Bratislava. While Slovnaft is working to replace Russian oil with supplies from the Adriatic pipeline, the CEO noted concerns about whether this pipeline’s capacity would be sufficient to meet Czechia's needs.

From January 2025, Czechia will rely on two oil pipelines that have never been tested at full capacity, which could result in significant price fluctuations and potential fuel shortages, according to Dinka. He urged Czech politicians to seek an extension of the EU exemption.

Zdenek Dundr, VP of Mero, the state-owned operator of Czech oil pipelines, said that the TAL expansion is proceeding as planned, with key technical installations expected to be completed by the end of the year. Mero has held a 5% stake in TAL since 2012.