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Transneft will halt oil shipments to Poland via the Druzhba pipeline for four days

June 11/2021

MOSCOW (MRC) -- Russian oil pipeline monopoly Transneft will halt oil shipments to Poland via the Druzhba pipeline for four days to carry out maintenance work, the Interfax news agency reported.

The Soviet-built Druzhba pipeline, named after the Russian word for friendship, links Russian oilfields to European refineries and has the capacity to pump 1 million barrels per day (bpd). Polish pipeline operator PERN said that the halt of supplies has been agreed upon between the operators and their clients and that deliveries are expected to restart on June 12.

"Technological breaks in supplies from the east that last 1-3 days are routine and occur practically every month, of which PERN is informed in monthly delivery plans," PERN said in a statement. PERN's customers are Polish and German refineries. The Polish ones, owned by state-run PKN Orlen and Lotos, have been importing most of their crude from Russia via the pipeline.

PKN Orlen declined to comment. Lotos said that it had been informed about the planned break. "These events... do not affect the operation of the Gdansk refinery," Lotos press office said.

As per MRC, the European Commission agreed to the merger of the Polish concerns PKN Orlen and Lotos. For example, PKN Orlen received conditional EU antitrust consent to take over its rival Lotos and announced that it plans to buy Poland's largest oil and gas company PGNiG. The Polish state is the largest shareholder in PKN Orlen, Lotos and PGNiG. Orlen's acquisition of Lotos was announced in February 2018.

As MRC informed earlier, Polski Koncern Naftowy Orlen SA, (PKN Orlen) reduced the production of terephthalic acid (PTA) at the plant in Wloclawek (Wloclawek, Poland) due to a technical breakdown. Production problems at the enterprise supplying raw materials for PTA production led to a decrease in its output in January and most of February by 20%, and by the end of February - by about 50%.

PTA is one of the main raw materials for the production of polyethylene terephthalate (PET).

As per MRC ScanPlast, Russia's calculated consumption of polyethylene terephthalate (PET) grew to 263,660 tonnes in the first four months in 2021, up 13% compared to the same period in the previous year. 78.3% of the increase in consumption falls on the share of bottled PET chips due to the virtual absence of exports and an increase in the volume of imports.
Author:Anna Larionova
Tags:PET-granulate, terephthalic acid, PET bottles, PET films, PET preforms, Transneft, PKN Orlen.
Category:General News
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