MOL urges consolidation of INA refinery capacity
Ferenc Horváth, head of the downstream business at Hungarian oil and gas company MOL, urged the consolidation of refinery capacity at Croatian unit INA at a Reuters-organized summit today.
Horváth told the Reuters Eastern Europe Investment Summit that of INA’s two refineries, Rijeka has a much better competitive edge than the refinery in Sisak.
"As I could see from the earlier calculations and materials and discussions with colleagues from INA, there is no economic rationale and no economic environment where Sisak can competitively continue its refining operation," Reuters quoted Horváth as saying.
MOL noted that INA's refinery capacities exceed Croatian market demand and face competitive challenges. Speculation that the refineries will be shut down is a cause for concern in Croatia.
According to Horváth, MOL was reasonably confident that its crude supplies from Russia would not be disrupted by the Ukraine conflict, Reuters reported. "From a Russian point of view I don't see an execution risk. Of course, there is always a risk due to [the] Russia-Ukraine political situation for some disruption of crude deliveries," Horváth explained.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.