06 December 2012 15:43 [Source: ICIS news]
LONDON (ICIS)--Slovnaft is to improve the feedstock security of its refining and petrochemical production through the €60m ($79m) modernisation of a pipeline that will provide it with access to alternative oil supplies from the Balkans, the Slovak company said on Thursday.
Slovnaft, its Hungarian parent company MOL and Slovak pipeline operator Transpetrol have signed a memorandum of cooperation for the investment in modernising the 130-kilometre Friendship 1 pipeline that links Tupa in southwest Slovakia and Szazhalombatta, near Budapest in northern Hungary, it added.
The modernisation, which will raise Friendship 1's capacity, would provide Slovakia with access to oil that flows to Hungary via the Adria pipeline, which reaches to Croatia and Serbia and has branch lines to Slovenia and Bosnia and Herzegovina, Slovnaft said.
Slovnaft is currently dependent on Russian oil that flows to Slovakia from the east along the Druzhba pipeline.
“The modernised oil pipeline connection between Slovakia and Hungary and the gaining of alternative access to oil [delivered to ports on] the Adriatic coast is an effective solution for domestic oil safety,” said Oszkar Vilagi, the CEO of Slovnaft.
($1 = €0.76)
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