A new direction of oil supply is important, but so is another source

With the second pipe that will bring black gold from Hungary, it is possible to negotiate the future amount of fees for transport via “Janaf”, which is currently our only direction for the inflow of this raw material.

Photo-illustration: Unsplash (Juan Martinez)

In addition to the Adriatic oil pipeline “Janaf”, through which almost three quarters of the total amount of black gold reaches the Refinery in Pancevo, Serbia could in the future receive raw materials from another oil pipeline. It is about a project that has been current for a long time, about which the President of Serbia also spoke during his address from Budapest. He pointed out that he discussed the construction of an oil pipeline with a length of more than 200 kilometers with Hungarian Prime Minister Viktor Orbán.

Since the oil we buy is delivered by tankers to the terminal in Omišlj, and further via the Adriatic oil pipeline (“Janaf”) to the Refinery in Pančevo, it is good that there is a new direction of supply, not only do we not depend on that one direction, but also savings due to the possibility of buying cheaper Ural oil and lower transport costs.

Since the introduction of sanctions against Russia, “Gazpromneft” in Serbia has been prohibited from importing Russian oil. The new pipes would connect to the “Družba” oil pipeline, which “originates” in Russia and which is currently not covered by European Union sanctions.

Prof. Dr. Dragan Govedarica from the Faculty of Technology in Novi Sad says that this is a good move because we finally have another direction of supply. The “Družba” oil pipeline is working, and in the future, oil will reach not only Hungary but also Germany, Poland, Slovakia and the Czech Republic, because all these countries are supplied by this route. With about 4,000 kilometers, “Družba” is the longest oil pipeline in Europe and the world. Dubravka Đedović, the Minister of Energy, has repeated on several occasions that it is important that this alternative route will reduce the total cost of transport compared to transport to Omišalj and then the oil pipeline to the border with Serbia.

Transport costs are one of the key segments, but when another direction is obtained, then the relations will be different in the sense that it is possible to discuss on other bases and guess how much the transport fee will be via Croatia and how much via Hungary, which contributes to the possibility to lower the price.

Although it is always good when there is an alternative, those familiar with the country’s oil situation say that it would have been even better if we had found a new source of oil supply and turned to a landlocked country. Hungary is spared sanctions as an EU member because it is landlocked and can buy Russian oil, but what if the EU forbids Hungary from supplying Russian oil to Serbia via the new pipeline?

Therefore, a safer alternative would be Rijeka, Ploče, Bar, Durrës, Thessaloniki and Constanta, because we are talking about five or six other directions and different sources of oil supply, and not just new pipes and one supplier. – In such large energy projects, one should always see the profitability of the work. Because if we build an alternative oil pipeline, and we don’t have oil in that direction, we’re in trouble again – says this source.

Source: Politics

Source: energetskiportal.rs