Surging gas prices prompt fuel switch at Hungary’s MOL oil refinery
Soaring gas prices have prompted Hungary’s MOL to start switching its refinery fuel source to liquids from gas but emissions concerns remain an obstacle, the firm’s senior commercial expert Gergely Toth told a conference in Amsterdam.
Refinery fuel feeds furnaces and provides heat to process units.
Energy prices have surged since Russia, a major fuel exporter, invaded Ukraine on February 24, prompting Western sanctions and concerns of supply disruption.
MOL has switched up to 20% of its gas usage to liquid fuels at its 165,000 bpd Szazhalombatta Duna oil refinery in Hungary, Toth told the S&P Global Platts Middle Distillates Conference 2022 in Amsterdam. Some of the crude distillation units at the refinery are now using heavy fuel oil.
The refinery is able to switch up to 60% of its gas fuel source to liquid fuels.
“However, after connecting with local authorities and from an emissions perspective, we have decided just to switch to 15-20%,” Toth said, adding discussions are underway to consider the possibility of a further switch depending on emissions obstacles and price indications.
MOL is currently below its emissions ceiling at the Duna refinery even after the current switch, Toth said.
(Reporting by Rowena Edwards Editing by Chris Reese)
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