Relief coming from Sremski Karlovci – MOL to expand its fuel delivery terminal

The Hungarian oil company MOL intends to expand its fuel terminal in Sremski Karlovci.

According to the CEE Legal Matters platform, law firm NKO Partners advised MOL on this deal, and the expansion is being implemented, as stated, through the purchase of land from Dunav Oil and a construction and development arrangement with Naftachem for the execution of the expansion works.

The transaction included the purchase of adjacent land from Dunav Oil and a construction and development agreement with Naftachem, which, as stated, will significantly increase MOL’s fuel storage capacity in Serbia.

MOL’s fuel storage terminal in Sremski Karlovci opened six years ago and was the Hungarian oil company’s largest investment in Serbia.

The depot, where the fuel system management is fully automated, originally had five diesel tanks with a capacity of 8,000 m³ and three BMB tanks with a capacity of 4,000 m³, with an additive injection system in parallel with fuel transfer, a biological wastewater treatment plant, an oil separator and cooling systems for tanks to reduce evaporation.

Fuel delivery is enabled by river and road, and the possibility of delivery by rail was also announced. This investment was assessed by the Serbian authorities and MOL officials at the time as very important for the development of the oil market in Serbia and the country’s energy security.

Its importance was actualized at the beginning of this year, when the threat of the introduction of US sanctions loomed over Naftna industrija Srbije.

In February, MOL Group Vice President for Fuels Csaba Zsoter told RTS that MOL was ready to double the amount of fuel it supplied to Serbia, reminding that two new storage units had been added to MOL’s terminal in Sremski Karlovci the previous year, with a total capacity of 2,500 m³, but also complaining that the terminal was still waiting for the necessary permits to use these new capacities.

– Currently, there are serious logistical obstacles to efficient fuel transport and distribution, and the existing capacities are not sufficient to supply Serbia in the event of the cessation of NIS operations. Therefore, the state must create administrative preconditions to maximize imports to Serbia. This requires access to all domestic storage capacities, as well as enabling access for ships with foreign flags to all ports – Zsoter stated at the time.

By the way, the MOL terminal is located near the terminal of the domestic fuel import company Naftachem (which also owns Dunav Oil Term doo Sremski Karlovci). Both terminals are in the Prosjanica business zone in Sremski Karlovci, and MOL actually purchased its terminal, which it opened in 2019, from Dunav Oil, from which it is now also purchasing land for its expansion.

B. P.

MOL Hungarian Oil and Gas Budapest

MOL Serbia d.o.o. Beograd

Naftachem d.o.o. Sremska Kamenica

DUNAV OIL TERM DOO SREMSKI KARLOVCI

NIS a.d. Novi Sad

MOL Group

Naftachem

Dunav oil

Naftna industrija Srbije

MOL fuel terminal Sremksi Karlovci

expansion of fuel terminal