MOL looks to procure most of its crude oil from non-Russian suppliers

Hungarian oil company MOL Group has announced that it can source most of its crude oil from non-Russian suppliers, signalling a change in its approach to energy procurement.

This announcement came just ahead of a meeting today between Hungarian Prime Minister Viktor Orban and US President Donald Trump in Washington, DC, reported Bloomberg.

The discussions between the two leaders are expected to focus on sanctions targeting Russian oil.

MOL, which operates refineries in both Hungary and Slovakia, stated that it could look at a pipeline from Croatia as an alternative to replace up to 80% of its crude supply, if flows from Russia via the Druzhba pipeline through Ukraine are disrupted.

MOL reportedly said: “Should the crude flows via the Druzhba pipeline drop significantly, MOL can increase its utilisation of the Adriatic pipeline and supply ca. 80% of its landlocked refineries’ intake, although entailing higher technical risks and logistics costs.”

Both MOL and the Orban Government have previously argued that Hungary’s landlocked geography left the country with no viable alternatives to Russian oil.

Orbán had been urging President Trump to grant an exemption allowing Hungary to keep importing Russian oil without facing US sanctions.

The current statement from MOL marks a shift from its previous positions on Russian oil.

Hungary currently relies on Russia for around 90% of its crude imports, following increased purchases since Russia’s invasion of Ukraine in 2022.

The country has benefitted from lower Russian fuel prices, which have contributed to higher refining margins and improved MOL’s earnings in the third quarter.

As the EU plans to phase out Russian energy imports after 2027, Hungary is required to diversify its supply sources.

MOL stated that it is “cautiously progressing” with upgrades to its refineries in Hungary and Slovakia to boost its ability to process non-Russian crude.

Previously, both MOL and the Hungarian leadership have downplayed the potential for the Adriatic pipeline to serve as a significant alternative, citing technical and logistical challenges as well as disputes over the pipeline’s capacity.

The recent statement from MOL suggests a reassessment of these options as international pressure mounts, said the news agency.

Last month, fire broke out at MOL’s Hungarian refinery, which will reduce output by up to 300,000 tonnes per month until repairs are completed.

The company now anticipates refining 11.5 million tonnes (mt) of crude at the group level this year, as against the earlier 12mt.

"MOL looks to procure most of its crude oil from non-Russian suppliers " was originally created and published by Offshore Technology, a GlobalData owned brand.

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