The December issue of the World of Petroleum and Bitumen
The Czech Republic will halt imports of Russian oil by July 2025 as part of its strategy to diversify energy sources.
This move, announced by the Vice President of the MERO pipeline company, hinges on the completion of a $60 million upgrade to the Transalpine Pipeline. The project will increase the pipeline’s capacity to eight million tons per year, enabling greater imports of oil from Latin America, Saudi Arabia, and the North Sea, thereby reducing the country’s reliance on Russia as its primary oil supplier.
Historically, the Czech Republic has depended on Russian oil for half of its needs. However, since 1995, the country has sought closer ties with the West, including the construction of the IKL pipeline, which connects the Transalpine Pipeline to Czech refineries. Despite these efforts, a refinery owned by Poland’s Orlen has continued to process Russian crude oil, benefiting from exemptions to EU sanctions.
The shift toward Western alignment has not been without challenges. Private sector investment will be critical for infrastructure development, particularly as the government has ceased funding such projects. Nevertheless, the Druzhba pipeline, which currently imports oil from Russia, will remain as a backup and could even be repurposed to supply alternative crude oil from Ukraine or Kazakhstan.
The Czech Republic’s approach exemplifies a pragmatic balance between geopolitical imperatives and market-based solutions, aimed at achieving energy security and a diversified supply chain.
In 2022, Czech Prime Minister Petr Fiala described the country’s dependence on Russia for oil and diesel as one of its greatest security risks, calling for a comprehensive reassessment. As of last year, the Czech Republic received 50% of its crude oil and 90% of its natural gas from Russia.
By Bitumenmag
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