The Hungarian energy sector is facing significant challenges following the suspension of crude oil deliveries via the Druzhba pipeline, which halted on January 27. In response, the Hungarian energy group MOL has initiated formal procedures to access national emergency crude reserves. This move comes as the company seeks authorization from Hungary’s Ministry of Energy to release oil from its strategic storage, a necessary step to maintain refinery operations amidst supply shortages.
The disruption in pipeline flows has prompted MOL to adapt its logistics strategy by shifting towards maritime imports. The company plans to compensate for the lost volumes by utilizing tanker shipments, although these deliveries will entail longer transit times compared to traditional pipeline transport. Initial shipments are expected to arrive at Croatia’s Adriatic port of Omisalj in early March, with the subsequent transfer of crude to MOL’s refineries potentially taking an additional five to twelve days. As a result, it is anticipated that replacement volumes may not reach processing facilities until mid-March.
If supplies from eastern sources are not restored soon, MOL has indicated that Hungary could release approximately 250,000 barrels from its strategic stockpile as an immediate measure. The request submitted to the Ministry formally initiates the process for drawing on these reserves, underscoring the urgency of the situation.
MOL is also collaborating closely with Slovak authorities to ensure a coordinated regional response. The company operates the Slovnaft refinery in Bratislava, which boasts a processing capacity of 124,000 barrels per day. This makes uninterrupted access to crude oil essential for sustaining regional fuel supply and mitigating any potential disruptions.
Despite the current challenges, MOL has reassured stakeholders that both Hungary and Slovakia maintain emergency reserves equivalent to 90 days of consumption, complying with European Union regulations. The company has emphasized that fuel distribution at the retail level remains stable and that domestic markets continue to function without interruption. Officials are actively monitoring developments as alternative supply routes are being established in response to the ongoing situation.
