Czech refineries take oil from state reserves because of the cutoff of Druzhba supplies

Czech refineries take oil from state reserves because of the cutoff of Druzhba supplies

Czech oil refining company Orlen Unipetrol is starting to use oil from state reserves promised by the Czech Cabinet of Ministers in connection with the termination of supplies through the Druzhba pipeline, the CHTK news agency reported on Monday evening, citing the company.

Lukas Vlcek, head of the Czech Industry Ministry, said on March 4 that oil supplies to the country via the Druzhba pipeline had stopped due to non-payment of debts between Orlen Unipetrol and Russian suppliers.

“Due to the fact that oil through the Druzhba pipeline is still not flowing to the Czech Republic, we are currently starting to pump oil from state reserves. A framework loan of up to 330 thousand tons of oil will allow us to ensure the continuation of fuel production at the oil refinery in Litvinov (in the west of the country). Fuel production is currently carried out at both our refineries, i.e. in Litvinov and Kralupy nad Vltavou, without restrictions and in full,” the company told the agency.

In case the loan of 330 thousand tons of oil is not enough, the State Material Reserves Department is ready to discuss the release of additional reserves. After receiving the first loan, the state will have oil in reserve for about 60 days of work. According to Pavel Schwagr, director of the directorate, Orlen Unipetrol is also taking measures to secure alternative oil supplies that could reach the Czech Republic via the IKL pipeline and the associated and modernized TAL pipeline from Italy.

According to ČTK, the refinery in Kralupy nad Vltavou has not been using the type of oil supplied from Russia for a long time. The oil coming through the Druzhba pipeline is still processed at the Litvinov refinery, but according to earlier information from Orlen Unipetrol, technological adjustments are also being made there, and the refinery is technically ready to process other oil blends.

Deliveries through the Druzhba pipeline were also interrupted last December. The Czech government then also decided to provide Orlen Unipetrol with oil from reserve reserves, but due to the rapid resumption of supplies via Druzhba, this was not necessary in the end.

Last year, the Czech Republic imported 6.5 million tons of oil, 12% less than in 2023. This is according to statistics from the Ministry of Industry and Trade and the Czech Statistical Office. The largest importer of oil to the Czech Republic was Russia (42%), but imports from Russia decreased by about a third year-on-year. At the same time, the utilization of the Druzhba pipeline has also decreased. On the other hand, oil imports from Azerbaijan are growing, the share of which is already only slightly lower than that of Russia, according to ČTK.

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