The Czech government has authorised the release of 330,000 tonnes of crude oil from its state reserves to support the Litvínov refinery following the suspension of oil supplies via the Druzhba pipeline. This measure, announced on Wednesday, aims to stabilise domestic fuel supplies while efforts are made to address the pipeline disruption.
Pavel Švagr, head of the Czech State Material Reserves Administration, confirmed the decision on the social media platform X. He reassured the public that the fuel market remains stable, with no justification for speculative price increases. “We are monitoring the situation closely. Should the need arise, we are prepared to release additional reserves,” he stated.
Švagr noted that the country currently holds a 86-day supply of crude oil and petroleum products. Releases from the reserves will only occur if the pipeline’s operation is not restored in the coming days.
The Litvínov Refinery and Its Dependencies
The Litvínov refinery, operated by Orlen Unipetrol, has a processing capacity of 5.4 million tonnes annually. It is one of two major refineries in the Czech Republic, the other being the Kralupy refinery, also owned by Orlen Unipetrol. Both facilities rely in part on supplies from the southern branch of the Druzhba pipeline.
Additionally, these refineries are connected to alternative supply routes, including the TAL pipeline, which transports crude from Trieste, Italy, to Germany, and the IKL pipeline. Local crude production, which can be transported via the Druzhba pipeline or by rail, provides further flexibility.
Background on the Druzhba Pipeline
The Druzhba pipeline, one of the world’s longest oil pipelines, originates in Russia and traverses Belarus before splitting into northern and southern branches. The southern branch supplies oil to Ukraine, Slovakia, Hungary, and the Czech Republic.
On the morning of 4 December, oil flows to the Czech Republic via the Druzhba pipeline were halted. While no specific reasons for the disruption have been disclosed, Transneft, the Russian state-owned operator of the pipeline, stated that deliveries through Russian territory remain operational.
Mitigating Supply Risks
The Czech government’s swift response highlights its preparedness to mitigate risks to national energy security. The decision to release oil from strategic reserves underlines the importance of maintaining uninterrupted operations at key refineries such as Litvínov, which play a central role in the country’s fuel production and distribution network.
Industry experts have pointed out that the Czech Republic’s diverse supply network, including access to the TAL and IKL pipelines, provides an important buffer against supply disruptions. However, prolonged interruptions to the Druzhba pipeline could test these contingencies.
