MOL, MVM Partner to Expand Azeri Oil Shipments to Hungary and Slovakia
(Reuters) — Hungarian oil and gas group MOL and state-owned energy company MVM will jointly charter tankers to ship up to 160,000 metric tons of crude oil a year from Azerbaijan to further diversify energy supply for Hungary and Slovakia, MOL said on May 22.
The companies will both transport crude oil to the Ceyhan terminal in Turkey via the Baku-Tbilisi-Ceyhan (BTC) pipeline, from where it will be distributed to MOL Group’s markets, with a particular focus on Hungary and Slovakia, the statement said.
Through this cooperation, MOL could increase the volume of alternative crude oil processed in its refineries by up to 160,000 tons per year, the companies said.
They added that this was equivalent to about two tanker shipments of Azeri crude a year, on top of the one shipment a month that MOL is already importing.
MOL bought Chevron's stake in the Azeri-Chirag-Gunashli (ACG) oilfield in the Caspian Sea in 2020 and MVM announced last year that it would buy a 5% stake in Azerbaijan's Shah Deniz gas field.
MOL has two refineries in Slovakia and Hungary fed with Russian crude via the Druzhba pipeline's southern spur but has been investing in technology needed to shift away from Urals oil.
However, progress has been slower than expected, MOL said last year, adding that it can refine up to 30-40% non-Russian crude at its refineries in Slovakia and Hungary, which could rise to 100% by 2026 with investments that are under way.
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