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JANAF and MOL set 2026 take-or-pay for 2.05 million tonnes crude oil

Croatian pipeline operator JANAF and Hungary’s MOL Group have formalised a take-or-pay arrangement for the transportation of 2.05 million tonnes of crude oil in 2026. The contract provides a contracted alternative to the Druzhba route amid restrictions affecting Russian crude transit. The agreement covers shipments over the period from 1 January to 31 December 2026.

Under the take-or-pay structure, MOL is required to pay for reserved pipeline capacity even if it transports less than the contracted volume. The deal is intended to give JANAF revenue visibility while maintaining MOL’s access to infrastructure linking the Adriatic coast with its refining system. This capacity reservation framework applies throughout the contract term.

Tariff and technical capacity dispute

The agreement follows a prolonged disagreement between the parties over tariffs and technical capacity. MOL said JANAF’s transportation charges were excessive and raised questions about whether the Croatian system could reliably supply volumes needed by its refineries. JANAF responded that its tariff methodology was transparent, distance-based, and applied equally to customers.

JANAF also stated that lower unit charges were available for customers reserving larger pipeline capacity. The contractual outcome formalises the transportation arrangement despite the earlier positions on pricing and system capability. The dispute has therefore shifted from negotiation terms to implementation for the 2026 period.

Druzhba constraints and Adriatic route role

The commercial context has gained strategic weight as Ukraine’s restrictions on Russian crude transit have weakened security on the Druzhba pipeline. As a result, the Adriatic route has become more prominent for diversification for Hungary and Slovakia. The route begins at the Omišalj terminal on the island of Krk.

Even with the contract in place, political disagreement remains between Croatia and Hungary over regional supply insecurity and transit fees. Hungarian officials have accused Croatia of using supply uncertainty to impose high transit charges, while Zagreb rejected that claim. Zagreb described JANAF’s charges as normal commercial pricing for a system requiring maintenance, storage, and capacity investment.

Implications for refinery operations and logistics

For JANAF, the take-or-pay deal is expected to strengthen throughput and reduce risks linked to underutilised infrastructure. Revenue from reserved capacity can support maintenance and potential upgrades, while future investment depends on whether Central European refiners commit to using the Adriatic route beyond short-term geopolitical needs. This includes decisions on continued volumes after 2026.

MOL is also balancing logistics costs against supply security from diversified sourcing through the Mediterranean corridor. Refineries configured around Russian-grade crude may need blending, technical adjustments, and changes to product yields when processing alternative feedstocks.

The arrangement is therefore more than a pipeline booking for 2026 volumes. It reflects how redundancy and non-Russian access carry direct commercial costs in Central Europe’s oil supply arrangements.

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