RUSSIAN OIL ARE SECURE
Hungarian oil group MOL is reasonably confident that its crude supplies from Russia will not be disrupted by the Ukraine conflict because its Russian partners are reputable companies, the head of its downstream business said.
Ferenc Horvath, MOL's Executive Vice President for Downstream, told the Reuters Eastern Europe Investment Summit that MOL had also started purchasing crude for its Hungarian refinery via an Adriatic pipeline, from Kurdistan and elsewhere, a year ago, although it still gets most of its crude from Russia via Ukraine.
"From a Russian point of view I don't see an execution risk. Of course, there is always a risk due to (the) Russia-Ukraine political situation for some disruption of crude deliveries," Horvath said on Monday.
He said MOL was buying one cargo, or 80,000 tonnes, of crude via the Adriatic each month.
"We are ready and our system is able to supply via the Adriatic pipeline enough crude for our Hungarian refinery, and also the majority of the Slovak refinery can be served."
MOL was adjusting to the excess refinery capacity in Europe, and had already transformed its Italian refinery into a logistics hub, Horvath said.
He also urged Croatian oil and gas company INA, in which MOL holds close to 50 percent, to consolidate its refining capacity at one site instead of keeping two refineries running, which is generating losses.
The Croatian economy minister, who has headed Croatia's team during negotiations with MOL, has not been willing to discuss plans to rationalise INA's refining business so far. The Croatian government is the other big shareholder in INA.
Horvath said INA refineries are probably the smallest and least competitive in Europe. INA's Rijeka refinery had a much better chance of being competitive in the market than its Sisak facility, he said.
"As I could see from the earlier calculations and materials and discussions with colleagues from INA, there is no economic rationale and no economic environment where Sisak can competitively continue its refining operation," he said.
As for MOL's outlook, Horvath said the refining and petrochemical environment had improved a lot in the third quarter, with margins increasing, and consumption rising this year in central Europe, MOL's core markets.
This slow recovery in fuel consumption should continue in the third quarter, he said.
"And regarding the Russia-Ukraine crisis, I believe that the impact on fuel consumption in this region will not be so direct or so quick," Horvath said.
|May, 23, 10:50:00|
|May, 23, 10:45:00|
|May, 23, 10:40:00|
|May, 23, 10:35:00|
|May, 23, 10:30:00|
|May, 23, 10:25:00|
WNN - "We met today to confirm the continuing commitment of the European Commission and the Atomic Energy Organisation of Iran towards the implementation of the Joint Comprehensive Plan of Action, and in particular its Annex III which addresses civil nuclear cooperation," Cañete and Ali Akhbar Salehi, president of the AEOI, said in a joint statement on 19 May. "We believe that the continuing implementation of the JCPOA, which was unanimously endorsed by UN Security Council Resolution 2231, is crucial for the development and progress of the region as well as the global peace and security."
BLOOMBERG - Natural gas will probably emerge as the main fossil fuel “winner” as it balances renewables in power generation and is used as a substitute for oil in petrochemicals. Long-term gas demand is set to increase by 15 percent, or by 750 billion cubic meters, compared to business as usual,
WNN - The United States, Canada, and Japan are launching the Nuclear Innovation: Clean Energy (NICE) Future Initiative. This global effort will make sure nuclear has a seat at the table during discussions about innovation and advanced clean energy systems of the future.
AOG - The agreement between ADNOC and ISPRL, which was initiated in January 2017 during a visit to India by a high-ranking UAE delegation, led by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, covers the storage of 5.86 million barrels of ADNOC crude oil in underground facilities, at the Karnataka facility. The first shipment, of approximately two million barrels of crude oil, will be followed by further shipments after India’s annual monsoon season.