Oil has stopped flowing to the Czech Republic through Russia’s Druzhba pipeline

oEnergetice.cz, ČTK
oEnergetice.cz, ČTK
4 December 2024, 12:26
Oil has stopped flowing to the Czech Republic through Russia’s Druzhba pipeline

Oil has stopped flowing to the Czech Republic through Russia’s Druzhba pipeline. Pavel Kaidl, a spokesman for refinery company Orlen Unipetrol, told ČTK today. The state-owned pipeline operator Mero said the Czech Republic’s oil supplies are not at risk, with deliveries continuing via the western route and stocks from state reserves available if needed. Mero is investigating the situation with Druzhba, spokesperson Barbora Putzová said. The government will discuss a loan of oil from state reserves to Orlen Unipetrol this afternoon.

„Oil is not currently flowing to us through the Druzhba pipeline,“ Industry and Trade Minister Lukáš Vlček (STAN) said on social media platform X.

He said there was no risk of an oil shortage for households and businesses, as supplies via the Italian TAL pipeline were continuing steadily.

„We will nevertheless take preventive action, so today I will propose that the government approve a loan of oil from the state’s material reserves to Unipetrol, to be used if supplies are not restored,“ Vlček said.

The minister said it was not yet clear why oil from Russia had stopped flowing. „We are in contact with all relevant parties,“ Vlček stressed. Industry and Trade Ministry spokesman Marek Vošahlík recalled that the Czech Republic had experienced a similar situation in 2019, when oil in the Druzhba pipeline was contaminated. Oil did not flow through Druzhba for two months.

Orlen Unipetrol also confirmed that deliveries through the Druzhba pipeline had stopped. As a precaution, it has already asked the State Material Reserves Administration (SSHR) to prepare a loan of crude oil from state reserves to ensure continuity of production and fuel supplies in the Czech Republic. „Fuel production is currently continuing without interruption, and availability on the Czech market is not at risk,“ Kaidl said.

The state-owned pipeline operator Mero is investigating the situation with Druzhba. „The Czech Republic is prepared for similar situations through the reserves held by the State Material Reserves Administration. Strategic stocks of crude oil and petroleum products are available in the event of a short-term supply disruption, and can keep the country operating for 90 days. Supplies via the western route, through the TAL and IKL pipelines, are running without problems,“ Putzová said.

Until now, oil has flowed into the Czech Republic from two main sources. One is the Druzhba pipeline, which carries oil from Russia. It accounted for 58 percent of supplies last year. The rest of the oil comes through the German IKL pipeline, which connects to the Italian TAL pipeline.

The state plans to increase supplies through the TAL pipeline in the future. Mero began work last year on expanding TAL. The project, worth approximately 1.6 billion crowns, is expected to increase capacity for the Czech Republic by four million tonnes of oil a year from next year, allowing up to eight million tonnes a year to be delivered to the country by pipeline. Under current government plans, the Czech Republic could therefore completely end its reliance on Russian oil.

According to Petr Lajsek, an analyst at Purple Trading, if the disruption lasted longer, the Czech Republic would have to accelerate work on the Italian pipeline, as full operation following the capacity increase is not expected until summer 2025. „The timing of this situation could, however, work in our favour: demand for fuels tends to be lower in winter, and pipeline capacity is also less heavily used. I therefore do not currently expect a fuel shortage in the Czech Republic or a significant rise in prices,“ Lajsek added.

Translation disclaimer

This article is a machine translation of the Czech original and has not yet been fully reviewed. In case of any doubt, please refer to the Czech version.