Despite recent testing conducted in June on the JANAF crude oil pipeline, the assessments offered by Hungary’s oil and gas group MOL and Croatia’s pipeline operator JANAF have revealed a sharp divergence in views. MOL maintains that it requires firm guarantees of uninterrupted oil delivery through Croatian territory at competitive rates—assurances it claims JANAF has yet to provide. On the other hand, JANAF insists the pipeline’s throughput is sufficient to meet demand and that its tariffs fully comply with European Union pricing regulations.
This technical disagreement is unfolding against a politically charged backdrop. Hungarian Prime Minister Viktor Orbán’s electoral campaign includes threats to block Ukraine’s EU membership bid and objections to phasing out Russian energy imports by 2027. Within this context, MOL has indicated it is exploring a revival of the older pipeline route from Odesa in Ukraine to Poland, using the southern leg of the Druzhba system, although the proposal faces significant logistical and diplomatic obstacles.
MOL says it needs to secure an annual crude supply of 14 million tons to ensure steady operation of its refineries near Bratislava and Budapest—a volume more than seven times greater than the one currently guaranteed under its existing arrangement with JANAF. Szabolcs Szabo, MOL’s senior vice-president for value-chain management, argues that recent short-term pressure tests failed to reach this threshold. He emphasizes the importance of demonstrating full capacity under real operational conditions, including during maintenance downtimes and periods of stockpile exchange, to ensure the region’s energy security.
MOL has already invested approximately $170 million to upgrade its portion of the pipeline and expects its refineries to be fully capable of processing non-Russian crude varieties by next year.
JANAF confirms that it took part in the June trials alongside MOL representatives but challenges MOL’s conclusions. It asserts that the pipeline segment stretching from the Omisalj oil terminal to the Hungarian border already supports an annual flow of 11.8 million tons, and that, with the integration of approved flow enhancers, capacity could be raised to 14.3 million tons—enough to exceed the combined needs of both Hungarian refineries. The company denies any allegations of unfair pricing practices, highlighting that its tariffs are transparently calculated in line with EU rules and take into account factors such as pipeline length, utilization levels, and terms of the negotiated agreement.
