MOL, Slovnaft To Invest EUR80 Million In Adria Oil Pipeline-Agency
September 13 2011 - 11:11AM
Dow Jones News
Hungarian oil and gas company MOL Nyrt. (MOL.BU) and its
Slovakian unit Slovnaft (SLN.BS) will spend about EUR80 million to
modernize the Adria oil pipeline that runs between the two
countries, Hungarian state news agency MTI cited Slovnaft as saying
Tuesday.
The investment will significantly boost crude pipeline capacity
between Slovakia and Hungary, Slovnaft spokesman Anton Molnar said
in Bratislava.
The cost of the project will come mainly from private capital,
he added.
The Adria pipeline, completed in 1979, runs between MOL's
refinery in Szazhalombatta and Slovakia's Sahy. The pipeline runs
further south from Szazhalombatta, connecting MOL's refinery with
the port of Omisalj in Croatia.
After the renovation is completed, the pipeline will deliver
some 6 million metric tons of crude oil to Slovakia a year, about
the same as Slovnaft's refining capacity.
Slovnaft also said Tuesday that it signed a EUR60 million,
three-year contract with Transpetrol, the Slovak operating company
for the Druzhba pipeline, for the delivery of 17 million metric
tons of crude through the Adria pipeline in 2011-2013.
-By Veronika Gulyas, Dow Jones Newswires; +361-267-0623;
veronika.gulyas@dowjones.com