The Czech Republic’s oil reserves have been reduced to just 60 days’ worth of supply due to disruptions in Russian oil pipelines, raising concerns over future energy security.
Normally, the country keeps strategic reserves at the State Material Reserves Administration for up to 90 days, but a third of those reserves have been used to compensate for the lack of Russian oil deliveries since March.
Following the suspension of Russian oil supplies via the Druzhba pipeline on March 4, the Material Reserves Administration provided 330,000 tons of crude oil to Orlen Unipetrol, a company that operates two refineries in Kralupy nad Vltavou and Litvínov. The company has been using this oil to ensure continued production at its refineries until alternative oil blends are supplied through the TAL/IKL pipeline, which connects to the sea.
Orlen Unipetrol explained on social media, “To ensure supply for the Litvínov refinery and its fuel production until it is supplied with alternative oil blends, we contacted the Material Reserves Administration to provide us with oil.”
The oil supply disruptions began due to payment issues between Orlen Unipetrol and Russian suppliers, stemming from sanctions imposed on Russia by the U.S. The Czech government, however, has approved the release of additional reserves to stabilize the situation.
Orlen Unipetrol’s spokesperson, Pavel Kajdl, confirmed that both refineries are running at full capacity. However, Pavel Švagr, Chairman of the State Material Reserves Administration, noted that half of the oil provided to Orlen Unipetrol has already been used. He also assured that no further oil loans are planned, as the company has secured alternative supplies via the TAL pipeline from Trieste, Italy. If needed, additional reserves could be released to stabilize the Czech fuel market.
An informed source revealed that Orlen Unipetrol is currently assessing whether it will exhaust the entire oil credit or replace the Russian oil shortfall by increasing supplies from the TAL pipeline. “For now, they are pumping oil from two of the four tanks. But as soon as they start pumping from one tank, they must use the entire tank,” the source said.
