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Croatia: JANAF rebuts MOL and Slovnaft allegations of supply risks

Croatian pipeline operator JANAF has issued a strong response after MOL and Slovnaft informed the European Commission’s Directorate-General for Competition that JANAF’s actions allegedly threaten the security of supply through the JANAF oil pipeline. The two companies argue that recent decisions by the Croatian operator have created operational uncertainty for their refineries in Hungary and Slovakia.

JANAF rejected the accusations, stating that crude oil transport is being carried out strictly in line with existing contracts, technical regulations, and the agreed transport schedule. The operator stressed that MOL Group is currently using only a fraction of its contracted pipeline capacity and said it expects the company to increase shipments in accordance with the signed agreement. Under current arrangements, JANAF has a transport contract for up to 2.1 million tons of crude oil until the end of this year and a storage contract at the Omišalj and Sisak terminals valid through 2027.

The Croatian Government also dismissed MOL’s claims. Economy Minister Ante Sušnjar stated that Croatia is fully prepared to participate in any EU proceedings, confident that all facts are on its side. He emphasized that JANAF is fulfilling its contractual obligations and that both the operator and the state are prepared to guarantee an annual delivery capacity of up to 15 million tons to MOL’s two refineries—equivalent to their maximum processing capacity.

Sušnjar questioned the financial arguments raised by MOL, noting that the company has contracted around two million tons annually but is currently taking less than half of that volume. Because pipeline tariffs decrease as transported quantities rise, lower throughput directly affects pricing. He said Croatia has no issue presenting this to the Commission, emphasizing that JANAF’s system remains stable and secure despite the underutilization.

Although JANAF is operating with significant spare capacity, the Minister stressed that the company remains financially sound and is diversifying into new business areas, including renewable energy, to strengthen long-term stability. He added that JANAF continues to contribute to regional energy security through cooperation with Serbia’s NIS and ongoing crude transport for MOL.

In contrast, MOL and Slovnaft claim that JANAF recently informed them it would only accept already-purchased crude oil if the companies also inject additional volumes of “push oil” into the system—an obligation they argue is not included in existing contracts and could jeopardize supply continuity. The Hungarian side contends that such conditions could constitute a breach of contract and undermine refinery operations.

As MOL and Slovnaft pursue their complaint in Brussels, the Croatian Government maintains that JANAF is fully compliant with all obligations and that its infrastructure can ensure stable and reliable deliveries to Central Europe. The dispute now shifts to EU regulators, who will assess whether JANAF’s practices align with competition rules and energy security requirements.

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