MOL and Slovnaft Seek EC Intervention on Janaf's Pipeline Practices

Background

MOL and Slovnaft have approached the Directorate-General for Competition of the European Commission regarding Janaf's recent practices concerning the Adria-pipeline. These practices have raised concerns about the security of crude oil supply through the Croatian section of the pipeline.

Unexpected Demands

Janaf informed MOL and Slovnaft that they would only receive their already purchased and scheduled crude oil deliveries if they agreed to purchase additional volumes, termed as "pusher oil." This requirement was unexpected and not previously an issue in their cooperation, nor is it mentioned in their contracts.

Contractual Implications

The request from Janaf might contravene the terms of the existing contracts. Recently, Janaf failed to deliver the latest ordered quantity on time and indicated that similar conditions would apply to future deliveries. This situation has immediate and serious consequences, as Janaf is leveraging its infrastructure position to impose unilateral changes to the contract governing access to non-Russian crude oil transport.

Impact on EU Supply

These developments undermine MOL and Slovnaft's ability to secure the necessary volumes of non-Russian crude to meet regulatory compliance and ensure the continuous operation of the Slovak refinery, which is crucial for the fuel supply of several EU Member States. The situation also raises questions about the reliability of the southern pipeline system, which is significant for the EU's plan to phase out Russian oil.