Hungary and Croatia strengthen their energy cooperation

Hungarian Prime Minister Viktor Orban’s chief of staff, Gergely Gulyas, announced on Thursday the possibility of cooperation between Hungary and Croatia to increase the capacity of the Adriatic pipeline. This pipeline transports non-Russian crude oil to Hungary.

The development of the Adriatic pipeline, a solution to avoid dependence on Russia

Gulyas explained that the Hungarian government has been discussing its 2030 energy strategy, which will include increasing the processing capacity of the Danube refinery of Hungarian oil and gas group MOL. Hungary is very dependent on Russian fuel imports. The MOL refinery currently receives crude oil via the Druzhba pipeline, which originates in Russia and supplies several Central and Eastern European countries.

Gulyas pointed out that without crude oil from Russia, shipments could only come through the Adriatic pipeline, but that its current capacity was only 70-80% of what would be needed. Therefore, this project is considered of great importance for Hungary, which wishes to implement it in cooperation with Croatia.

Implemented with funding from the EU Recovery Fund

The core of Hungary’s energy strategy will be nuclear power, renewable energies such as solar power, and the development of the national grid. Funding for this strategy can be drawn from the European Union’s recovery fund, once the money is agreed. Brussels has temporarily suspended EU funds to Hungary due to a dispute over the rule of law, but Budapest hopes to release the funds by mid-year.