Croatia’s state-owned oil transportation company, JANAF, has expressed dissatisfaction with what it considers one-sided and misleading public statements made by the Hungarian MOL Group regarding the signing of a one-year oil transport contract.
MOL and Slovnaft recently raised concerns about the short-term contract, claiming that the transport rates set by JANAF are significantly higher than the European average. However, JANAF asserts that it offered MOL Group members the option of both one-year and multi-year contracts, and MOL voluntarily chose the shorter-term agreement.
JANAF argues that MOL Group’s dissatisfaction with the lack of a long-term contract and its attempt to attribute responsibility for alleged supply chain risks and high energy prices to the Croatian company is unwarranted. Regarding the issue of oil transport pricing, JANAF explains that there is no standardized European benchmark for oil pipeline transport costs. The costs for each pipeline system vary based on geographic location and infrastructure. Specifically, JANAF’s system requires significant investment to maintain its strategic tanker reception hub and its extensive pipeline network, which crosses challenging terrains. As such, the costs of maintaining security and environmental protection for the system are considerable.
Unlike many other oil pipelines owned by vertically integrated oil companies, which transport crude oil to their refineries with minimal or no profit margins, JANAF operates as a commercial entity that generates revenue for its shareholders. Transport prices within JANAF’s network are determined by a consistent methodology applied to all partners, and agreements with MOL Group members have always been based on mutually agreed-upon commercial terms.
JANAF emphasizes its commitment to maintaining a strong partnership with MOL Group and expresses willingness to explore a long-term transport agreement with MOL and Slovnaft. Additionally, an increase in the volume of crude oil transported by MOL Group to Central Europe would, under the existing commercial terms, lead to more competitive pricing.
The company further underscores that it has demonstrated, through joint testing with MOL representatives, its technological and operational capability to meet MOL Group’s crude oil supply requirements.
