Czech refineries began to take oil from state reserves due to the termination of Druzhba supplies

The Czech oil refining company Orlen Unipetrol is starting to use the oil from state reserves promised to it by the Czech Cabinet of Ministers in connection with the termination of supplies via the Druzhba pipeline, the CHTK agency reported on Monday evening, citing the company.

The head of the Ministry of Industry and Trade of the Czech Republic, Lukas Vlcek, said on March 4 that oil supplies to the country via the Druzhba pipeline had stopped due to non-payment of debts between Orlen Unipetrol and Russian suppliers.

"Due to the fact that oil is still not supplied to the Czech Republic via the Druzhba pipeline, we are currently starting to pump oil from state reserves. A framework loan of up to 330 thousand tons of oil will allow us to ensure the continuation of fuel production at the oil refinery in the city of Litvinov (in the west of the country). Fuel production is currently underway at both of our refineries, that is, in the city of Litvinov and the city of Kralupi nad Vltavou, without restrictions and in full, " the company told the agency.

If a loan of 330 thousand tons of oil is not enough, the State Material Reserves Department is ready to discuss the release of additional reserves. After receiving the first loan, the state will have oil in reserve for about 60 working days. According to the director of the department Pavel Shvagr, Orlen Unipetrol is also taking measures to ensure the supply of alternative types of oil that could flow to the Czech Republic via the IKL pipeline and the associated and modernized TAL oil pipeline from Italy.

According to CHTK, the refinery in the city of Kralupi nad Vltavou has long not used the type of oil that is supplied from Russia. The oil coming through the Druzhba pipeline is still processed at the Litvinov refinery, however, according to earlier information from Orlen Unipetrol, technological adjustments are also being made there, the plant is technically ready for processing other oil mixtures.

Deliveries via the Druzhba pipeline were also interrupted in December last year. The Czech government then also decided to provide Orlen Unipetrol with oil from reserve reserves, however, due to the rapid resumption of supplies via Druzhba, this was not necessary in the end.

Last year, 6.5 million tons of oil were imported to the Czech Republic, which is 12% less than in 2023. This is evidenced by the statistics of the Ministry of Industry and Trade and the Czech State Administration. The largest importer of oil to the Czech Republic was Russia (42%), but imports from Russia has shrunk by about a third year-on-year. Along with this, the loading of the Druzhba oil pipeline has also decreased. On the other hand, oil imports from Azerbaijan are growing, the share of which is already only slightly inferior to the Russian one, CHTK notes.