BELARUS NEWS AND ANALYSIS

DATE:

22/03/2010

Orlen may benefit from Belarus' oil troubles

Imported oil from Venezuela will pass through Orlen pipeline in Lithuania

From May, Venezuela will begin to supply crude oil to Belarus. However, the oil can only reach Belarusian refineries through pipelines belonging to Orlen's Lithuanian unit. Relations between Minsk and Moscow have soured since Russia forced Belarus to accept increased duties on its oil, which will cost Minsk at least $3 billion.

Russia has now agreed to supply 6.3 million tonnes of oil without the additional duty, but this is too little to protect Belarusian refineries from losses.

Moscow is still insisting that full duties be paid on 15 million tonnes of crude used for the production of fuel for export. Minsk cannot afford this.

From May, Venezuela will begin supplying Belarus with four million tonnes of oil per year, increasing later to five million tonnes. According to Belarusian company Belneftekhim, the oil will be unloaded from tankers at Lithuania's Butynga terminal and transmitted by pipeline.

The pipes are owned by Orlen Lietuva. Orlen said there are no talks ongoing on the subject with the Belarusian side, adding that without its participation there is no way to transport the oil to Belarus.

Source: Gazeta Wyborcza

Source:

http://www.wbj.pl/article-48944-orlen-may-benefit-from-belarus-oil-troubles.html?typ=wbj


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