SLOVNAFT and the MOL Group intend to modernize the Adria pipeline, participation offer also to Transpetrol

abarrelfullabarrelfull wrote on 15 Sep 2011 16:26
Tags: europe hungary mol pipeline slovakia slovnaft

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SLOVNAFT and the MOL Group plan to invest into modernization of Adria crude oil pipeline. The investment could significantly increased capacity of the pipeline between Slovakia and Hungary and based on the initial estimates will cost around 80 million euro. For Slovakia this would mean the creation of alternative solution for the transportation of oil in sufficient quantity, without supplies from other pipelines. SLOVNAFT offered participation in the project to the state company Transpetrol as strategic partner.

The modernization of Adria pipeline is the final step for Slovakia to emerge from the one-sided dependence on the Druzba pipeline. While an alternative transport of oil through the Adria also existed before, thanks to the investment it will be able to import through this pipeline crude oil at an annual processing capacity of refinery Slovnaft. The investment will be focused on modernization and total reconstruction of 50 years old crude oil pipeline between towns Šahy (on Slovak side) and Százhalombatta (in Hungary), where the mouth of the Adria pipeline is leading from the Croatian seaport Omišalj.

„This step will enable us to significantly strengthen the energy security of Slovakia, thereby reducing the risk of a supply crisis. The decision to invest in this project is consistent with the concept of the European Commission too, which considers the Adria as a strategic pipeline for the region. The project of modernization of Adria pipeline comparing to other alternatives is the most effective solution in terms of security of oil supplies and the costs. Moreover we offer the State the opportunity to significantly enhance the economic and political influence in Central and Southeastern Europe. The project is not an alternative to linking Bratislava – Schwechat but the only solution to enhance energy security of Slovakia“, said Oszkár Világi, the Chairman and the CEO of SLOVNAFT.

The decision to invest into modernization of Adria pipeline sprang up after careful consideration of all other alternatives also in the context of discussions on the possible interconnection of pipelines Bratislava - Schwechat. Essential arguments for the project were the stability of oil supplies, the volume and quality of oil for the purpose of processing technology and configuration of the refinery in Bratislava. The advantage of the modernization of Adria pipeline is also the fact, that it will be funded primarily from private sources.

Adria pipeline was founded in 1976-1979. The aim of the construction of the 600 kilometers long pipeline was to supply oil to refineries in Yugoslavia, Hungary and Czechoslovakia different from the Russian quality (Russian Export Blend). The Omišalj seaport, where the pipeline starts, has two filling stations and is able to accept tankers of categories VLCC (Very Large Crout Cargo, over 150 thousand tons), because the water depth in the bay is up to 35 meters. The nominal capacity of the coastal stores reaches 760 thousand m3 of oil and 60 thousand m3 of oil products. At the end of the 80's the terminal was connected to the refinery in Rijeka.

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