Page 9 - EurOil Week 46 2022

EurOil PIPELINES & TRANSPORT EurOil

Power cut to Druzhba pipeline shuts down

oil supplies from Ukraine to Hungary

HUNGARY POWER to the Druzhba (Friendship) pipeline It was just a matter of time before this sce-
which delivers Russian crude to Europe has nario unfolded as Russian armed forces have
MOL's main refinery been cut after a transformer in Ukraine, near been targeting critical infrastructure for weeks,
near Budapest and the border with Belarus, was hit by a rocket on Erste Bank oil analyst Tamas Pletscher told
its main facility in November 15. Russian forces were carrying out online news site Index.hu.
Slovakia are supplied massive air strikes on Ukraine, mainly targeting The pipelines need electricity to run pumps
by Druzhba. transmission stations. and compressors, and during an emergency
The pipeline itself was not damaged, but the back-up systems take over power supply.
attack temporarily interrupted crude deliveries MOL’s refineries have at least one month's of
to Hungary and Slovakia. reserves and when that runs out, they can tap
Hungarian oil and gas company MOL's main the strategic stocks, which is enough for 90 days.
refinery near Budapest and its Slovakian facil- After that, alternative supply comes into play,
ity in Bratislava are supplied by the Druzhba which in the case of the MOL means using the
pipeline. Adriatic pipeline, the analysts pointed out.
Russia's state-owned pipeline monopoly In May, the company unveiled contingency
Transneft has been notified by Ukraine that oil plans for a potential cut-off in Russian crude
supply to Hungary via the oil pipeline's southern oil supplies. The company estimated that the
leg is temporarily suspended. conversion of refineries to process oil coming
MOL said crude reserves are sufficient to outside of Russia would take 2-4 years and cost
keep the Danube Refinery operating continu- $500mn-700mn and would have to be done
ously while the damage is repaired. without any disruption to production
The company is "closely following events as MOL is working to convert its Bratislava
they unfold" and "examining the conditions for refinery to process other grades other than Rus-
restarting the Druzhba pipeline together with its sian Ural-type oil by the end of 2023.
Ukrainian partners". MOL is prepared to ensure Prime Minister Viktor Orban convened a
energy supply for Hungary and the region on a meeting of the Defence Council for 8pm CET on
continuous basis. Tuesday after the oil deliveries came to a halt. ™

Week 46 21•November•2022 www. NEWSBASE .com P9