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Hungary’s MOL to expand completed by May 15 at the latest. Serbia through Turkey, which did not impose
Back in November 2021, Serbia agreed
sanctions on Russia, and then through
petrochemical line with to continue buying Russian gas at a price of Bulgaria. He added that he did not see “any
$270 per 1,000 cubic metres for six months
interest from Bulgaria, Hungary or Serbia
€174mn propylene plant after its long-term contract expired, despite in order for someone to cut off the supply of
Russian gas”.
the hike in gas prices on international
MOL’s petrochemical subsidiary MOL markets recently. The deal was struck “We also buy gas from Hungary, which
Petrolkemiai laid the cornerstone of a between the presidents of the two countries. comes from Ukraine. We are now buying
HUF65bn (€174mn) propylene plant in According to Bajatovic, under the new gas from Ukraine. Therefore, I do not expect
Tiszaujvaros, northeast Hungary, on March contract, Russia will deliver 3bn cubic metres something like that to happen, because it is
23. of gas per year at a price of $600 to $850 per not in the interest of Russia or Europe,” he
The plant, to be completed by the end of thousand cubic metres. Currently, Serbia concluded..
2024, is part of MOL’s strategy to shift some receives 6mn cubic metres per day from
production from vehicle fuel to materials Gazprom at the lower rate of $270.
that can be used to make consumer durables. Belgrade resists sanctions pressure Romanian minister expects
The project is the largest investment by Serbia has so far resisted calls from EU
a Hungarian company this year, received leaders to join western sanctions on Russia, significant volumes of gas
government HUF5bn in government grants, though it has condemned the invasion of
and is expected to preserve 1,200 jobs, the Ukraine. from Black Sea next winter
Minister of Foreign Affairs and Trade Peter President Aleksandar Vucic has long
Szijjarto said at the ceremony. pursued a multi-vector foreign policy, Black Sea Oil and Gas (BSOG) will begin
The propylene plant is an integral part of pursuing EU accession while maintaining shortly production at their Black Sea natural
MOL’s 2030 strategy, which aims to diversify friendly relations with Russia, China and the gas perimeter, Romanian Energy Minister Vir-
the company from its core operations, US. However, as an EU accession candidate, gil Popescu announced on March 22, adding
make it become the leading petrochemical Serbia has been under heavy pressure to join that he estimates that around 1bn cubic meters
company in the region and increase the share international sanctions imposed on Russia of gas would be delivered by the company in
of non-motor fuel products. after its unprovoked invasion of Ukraine. the first year of operations.
Over the next few years, CEE’s second This proved to be insufficient, though, for “Gas extraction from the Black Sea has
largest oil and gas company will invest Serbia to turn its back on its old ally. already begun. Black Sea Oil and Gas have
around $4.5bn in petrochemicals by 2030, Explaining the decision, Vucic said on started [tests]. We will have the first gas this
which will make Tiszaujvaros the region’s February 25 that Belgrade will be “guided year. We will have 1bn cubic meters more gas
leading chemical centre. solely by the protection of its citizens’ vital in the national transportation system this year,”
The new propylene plant will produce economic and political interests”. Popescu said.
100,000 tonnes of propylene, significantly Interior Minister Aleksandar Vulin However, as in the case of OMV Petrom
covering MOL’s demand for raw materials stressed Serbia’s determination not to impose — which operates another major natural gas
in the chemical industry and increasing the sanctions on Russia at a meeting with the perimeter in Romania’s offshore area — BSOG
company’s self-sufficiency and reducing the Russian ambassador in Belgrade, Aleksandar expects the authorities to adjust the regula-
dependence of suppliers. Bocan-Kharchenko on March 22. tions, mainly the Offshore Law, before begin-
The facility will also provide propylene for “Serbia, led by Aleksandar Vucic, is an ning deliveries to the market.
the company’s flagship €1.3bn polyol plant independent and sovereign country that Amendment of the Offshore Law will take
,to be completed in the H2 with an annual chooses its friends on its own,” Vulin said, place in parallel with the tests run by BSOG,
capacity of 200,000 tonnes. according to an interior ministry statement. Popescu said.
The construction of these two facilities Moving away from Russian gas “I had a discussion in the coalition last
will provide jobs for thousands of people Serbia’s talks with Russia are due to start week. We are convinced that in the next period
and create competitive jobs in the long term, at a time when other governments in the you will also see the Offshore Law in parlia-
according to MOL. region are looking at ways to move away ment,” Popescu said. He provided no insights
Referring to the war in Ukraine, Szijjarto from dependence on Russian gas imports. into the nature of the amendments, though.
warned that Europe faced “grave challenges” However, while calls for an embargo on
in securing its energy supply, while Russian oil and gas have gained traction in
reforming Europe’s energy landscape would the EU, Germany is resisting the measure. Romgaz’ takeover of
take “not days or weeks but many years”. Bulgarian Prime Minister Kiril
Hungary rejects sanctions that would Petkov said on March 21 that Bulgaria ExxonMobil’s stake in
unduly burden Hungarian households and expects to complete its gas link with Greece
industry, he said. by the end of June, aiming to end its energy Neptun Deep faces new
dependence on Russia. The completion
of the Greece-Bulgaria interconnector delay
Serbia prepares to start talks has been delayed for years by Sofia but
Petkov’s government is now keen to complete The management of Romanian state-
on new Russian gas contract it as soon as possible. controlled natural gas company Romgaz
Bajatovic commented on the
has summoned representatives of its
Director of Srbijagas Dusan Bajatovic announcement by Bulgaria that it plans shareholders to meet on April 28 to
announced that negotiations with Gazprom to end imports of Russian gas. In a video endorse, once again, the $1.06bn deal with
on a new long-term gas arrangement for published by Tanjug, Bajatovic said that he ExxonMobil involving half of the offshore
deliveries of Russian gas to Serbia will begin did not believe that Bulgaria would stop perimeter Neptun Deep in the Black Sea,
in the next few days, and they should be importing Russian gas. Russian gas comes to the company announced in a note to

Week 12 24•March•2022 www. NEWSBASE .com P15