Czech Litvínov refinery faces problems, produces less diesel; state reserves to help

Orlen Unipetrol’s Litvínov refinery experienced technical problems in recent weeks after resuming operations following a planned shutdown. As a result, it produced less diesel. To ensure sufficient diesel supplies for the domestic market, the company will therefore borrow 20 million liters of diesel from the Administration of State Material Reserves (SSHR), equivalent to about three days of the refinery’s production capacity. Orlen Unipetrol spokesperson Pavel Kaidl and SSHR chairman Pavel Švagr told the Czech News Agency (ČTK). They said fuel supplies on the market remain sufficient despite the shortfall.

The company has also taken further measures. The refinery is now operating almost normally, and production should soon return to normal, Kaidl said. According to Orlen Unipetrol, the loan from SSHR is one of the precautionary measures the company has taken in response to temporary difficulties in maintaining diesel output. „We are maximizing diesel imports from neighboring countries, have limited diesel exports, and are optimizing deliveries to large customers. At the same time, as a precaution, we have used the option of requesting a temporary loan of a limited quantity of diesel fuel—20.000 cubic meters—from the Administration of State Material Reserves,“ the spokesperson added.

Švagr also confirmed the diesel loan agreement. He said the refinery had produced less diesel because of a technical problem that arose as it was ramping up to full operation after the planned shutdown. Orlen Unipetrol carries out such shutdowns every four years for regular maintenance; this year, the company began the work in early April. „During the two-month shutdown, the technological equipment was inspected, upgraded and prepared for the next operating cycle, including the transition to new crude oil blends,“ Kaidl noted.

According to Orlen Unipetrol, the situation at the Litvínov refinery has now improved, and daily diesel production is close to normal levels. „This means that in the coming days we will supply the Czech market with the usual amount of diesel,“ Kaidl said. He also noted that the group’s other refinery, in Kralupy nad Vltavou, is operating normally.

In response to the problems, the Administration of State Material Reserves also asked major companies in the market how they had secured supplies of diesel and gasoline for the Czech market in the coming weeks. „Their figures indicate that fuel supplies should be sufficient. We will continue to monitor the market situation,“ Švagr said. He also assured the public that if there were problems supplying the market, the administration would release additional fuel from its reserves. „There is therefore no reason for any speculative increase in diesel prices or for motorists to be concerned,“ the SSHR chairman stressed.

Despite the current loan, the Czech Republic continues to meet EU rules and has emergency stocks of oil and petroleum products sufficient for 91 days of normal daily consumption, according to the administration.