Janaf Withholds 90,000 Tons of Crude amid Dispute with MOL

Croatian oil pipeline operator Janaf has rejected allegations by Slovak company Slovnaft, member of Hungary-based MOL Group, that it violated the terms of their supply contract.

The Croatian company emphasized in a statement on Wednesday that it was fulfilling all of its obligations in full. “We strongly reject the allegations made by Slovnaft, a member of the MOL Group, regarding a breach of contract. These are untrue and unfounded. Oil transports via the Janaf system are carried out in accordance with the transport calendar, the concluded contract, the technical access conditions, and standard industry practices,” the company said.

Janaf also called on the MOL Group to increase the operational capacity utilization of the oil pipeline “in accordance with the principle of good faith.”

According to its statement, MOL’s current use of the pipeline is “significantly below” the level specified in the contract and in line with industry standards.

Slovnaft announced on Tuesday that Janaf had withheld 90,000 tons of Arab Light crude oil intended for supply to foreign customers of the refinery in Bratislava. Janaf reportedly argued that this quantity had to remain in the pipeline for technical reasons after the Croatian company suspended oil deliveries to Serbia’s NIS, whose Russian owner had been sanctioned by the U.S. Government.

The value of the withheld shipment was estimated at around $50 million, and according to Slovnaft, this incident could “seriously jeopardize” the supply of non-Russian fuels to the Central European region.

The member of the MOL Group added that, given the export nature of the refinery, which also supplies the Czech, Austrian, and Polish markets, it was planned that the share of non-Russian oil from alternative sources in its processing would reach 50 percent in October and November.

Slovnaft pointed out that Janaf had withheld the oil without prior notice and despite the existing contract.

“Slovnaft has informed the Croatian supplier Janaf in a letter of a serious breach of contract, citing the withholding of deliveries to Slovakia. In our opinion, the company has thus failed to fulfill its delivery obligations,” explained Anton Molnár, spokesperson for Slovnaft.

Via MTI, Featured image: Pexels

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