07 June 2012 17:27 [Source: ICIS news]
LONDON (ICIS)--The profitability of Czech petrochemical producer Unipetrol could suffer if its struggles to obtain Russian oil via the Druzhba pipeline are not resolved, ING banking group said on Thursday.
Unipetrol has for more than two months been unable to source high crude volumes from the eastern Druzhba pipeline, with Russian oil companies having chosen to divert oil to more profitable export destinations through new infrastructure such as the Baltic Ust-Luga terminal.
During that period, Unipetrol has been able to fully replace lost oil volumes by bringing more crude through the Ingolstadt–Kralupy–Litvinov (IKL) pipeline, which brings oil loaded in ?xml:namespace>
“[The pipeline situation has not significantly impacted on Unipetrol’s petrochemical profitability] at this stage. On the other hand,
A source at Unipetrol said the company was assessing the outlook for crude supplies should reliance on the IKL in the longer term combine with the reopening of
Currently, however, the IKL was providing enough oil for both the Litvinov and Kralupy refineries, which supply feedstock to Unipetrol, he added.
The extra cost of IKL-sourced oil compared to Druzhba-sourced oil has in recent months been around $1 (€0.80) to $1.50 per barrel, the source said.
The office of the Czech government envoy for energy security is seeking answers from the Russian government as to what the outlook is for restoring full oil supplies to the
Unipetrol is 63%-owned by
($1 = €0.80)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections