Page 17 - EurOil Week 41 2022

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Gazprom confirms commitment modern BAT (Best Available Technology) to six months in jail, while Hernadi got a two-
At the end of 2019, Sanader was sentenced
operating standards with a low environmental
on Hungary gas deliveries impact. The processing capacity of the unit year jail sentence. The verdicts were appealed
will be about 1,500 tonnes/day of reformed
against by both USKOK and the defendants.
Russian gas giant Gazprom has confirmed its gasoline. The case, that has dragged on for around
commitment to continued deliveries of gas to The process of replacing the existing 10 years, concerns the privatisation of
Hungary and the long-term operation of the aromatic products unit will be carried out Croatian energy company INA. The court
TurkStream pipeline, Hungarian Minister of between 2023 and 2025. found that Hernadi had given Sanader a
Foreign Affairs and Trade Peter Szijjarto said The aromatic products unit currently €10mn bribe in exchange for allowing MOL
on October 12 after meeting with the Russian functioning at Petrobrazi Refinery was put to take a dominant position in INA.
company’s CEO Alexey Miller in Moscow. into production in 1961. The review motion may be filed at the
“Gazprom confirmed its commitment to The new unit of aromatic products will be Swiss court until 8 February and a response is
operating the TurkStream for the long term put into operation in 2026. It will ensure the expected by the end of 2022.
and confirmed its commitment with regard continuity of production of gasoline with a Meanwhile, Croatia will not proceed
to the long-term predictability of deliveries volumetric benzene content of less than 1%, with the plan to buy back MOL’s stake until
to Hungary,” Szijjarto said in a Facebook according to current European standards. the new legal action is completed. Economy
message. At the same time, it will be possible to Minister Tomislav Coric said the two parties
Part of Hungary’s Russian gas deliveries obtain a larger amount of toluene from the had different views on the price of the stake
that comes via Austria, through the northern process of gasoline production. Toluene can and were unable to reach an agreement until
delivery route, will be re-routed through the be used to obtain commercial gasoline with now.
southern delivery route. an improved octane number, but it can also Croatia owns a 44.85% stake in INA, while
Under a 15-year agreement in autumn 202, be used as a solvent in the chemical industry MOL holds a 49.1% stake and management
the Russian gas giant guaranteed the annual to obtain paints and adhesives or in the rights. The two shareholders have been locked
supply of 4.5 bcm of gas through Serbia and processes of obtaining leather products. . in a long dispute over control of the company.
Austria, bypassing Ukraine. Gazprom agreed
to boost the delivery of up to 5.8 mcm gas per
day above the volume stipulated in the long- Swiss top court rejects Croatian Serbia to import only non-
term contract.
During the talks in Moscow, Szijjarto request to review UN ruling in Russian oil via Croatia’s Janaf
assured Alexey Miller that Hungary will
continue to take a stand on keeping gas dispute between INA and MOL Serbia will import only non-Russian oil via
deliveries and related activities exempt from Croatia’s Janaf pipeline in future, Serbian
sanctions. The Swiss Federal Supreme Court has turned Deputy PM and Energy Minister Zorana
Hungary’s top diplomat also finalised the down a request by the Croatian government Mihajlovic said on October 10.
terms of deferred payments granted by the to review a 2016 ruling by the United Nations Serbian oil company NIS is currently
Russian company for gas purchased during trade tribunal upholding a deal that has receiving Russian oil through Janaf, but
the winter. given control of INA to MOL, N1 reported in Croatia said it would not allow the transport
Earlier this month, state-owned energy October 12. of Russian oil as part of the EU sanctions.
group MVM agreed with Gazprom to defer At the end of 2021, the government Mihajlovic underlined that that the
its payments for gas purchases exceeding a decided to challenge the ruling of the UN new package of EU sanctions, which bans
certain threshold value, allowing Hungary to court, after the same request had been rejected import of Russian crude oil, will not affect
pay for the gas over three years if prices surge. twice in previous years. the stability of supply so there is no fear of
Late payment of gas will ease pressure on Croatia turned to the Arbitral Tribunal shortages of oil derivatives on the Serbian
Hungary’s widening trade deficit. of the United Nations Commission on market.
Soaring energy prices will lift Hungary’s International Trade Law (UNCITRAL) in “NIS has an agreement for import of
energy imports by some €15bn this year, Geneva in 2014 with the aim of cancelling Russian oil, which will pass through Janaf
according to calculations by the finance a 2009 deal that allowed MOL to obtain a until December 5, and after that date it will
ministry. dominant position in INA. MOL won the continue to import non-Russian oil that will
arbitration case in December 2016. pass hrough the same pipeline,” Mihajlovic
According to the Swiss top court, there was explained.
OMV Petrom replaces gasoline disagreement between Croatian courts and crude oil via Janaf is the most profitable and
Mihajlovic underlined that the import of
international arbitrations on the reliability of
production unit under €130mn witnesses, but that gave no solid ground for sustainable option for Serbia.
challenging the UN ruling, as Croatian courts
She recalled that Serbia has 20% domestic
investment had to rule on the criminal aspect of the case, oil, while the other 80% will be imported but
not from Russia.
while UNCITRAL was in charge of the civil
OMV Petrom (BVB: SNP), the largest aspect. Mihajlovic said that the construction of
integrated energy company in South-Eastern The ruling of the Swiss court was an oil pipeline to Hungary is a possibility
Europe, has announced that it will invest confirmed by the government in Zagreb but it that the energy ministry has included in its
approximately €130mn in the next three has declined to comment. investment plan, but that it is necessary to
years to build a new unit for the production The government has decided to take legal conduct analysis and see if there is economic
of aromatic products including gasoline action after the Croatian supreme court justification.
and toluene at Petrobrazi refinery - the sole upheld in October the guilty verdicts against
Romanian refinery that can produce gasoline former Croatian prime minister Ivo Sanader
to European Union standards. for taking a bribe from MOL head Zsolt
The unit will function according to Hernadi.

Week 41 15•October•2022 www. NEWSBASE .com P17