Kazakhstan begins oil exports to Hungary via Croatia

Kazakhstan’s national oil and gas company KazMunayGas (KMG), a subsidiary of the Samruk-Kazyna Sovereign Wealth Fund, has announced the first shipment of Kazakh crude oil to Hungary via Croatia.

This marks a significant milestone in Kazakhstan’s efforts to diversify its export routes to the European Union.

According to the company, the inaugural shipment of 85,000 tonnes of crude oil was delivered to a refinery in Hungary operated by MOL Group. The delivery is part of a strategic initiative aimed at strengthening cooperation between the two energy companies.

The oil was transported through the Caspian Pipeline Consortium (CPC) system to the Russian port of Novorossiysk. From there, it was shipped across the Black Sea to the Croatian port of Omisalj aboard the Alatau tanker, operated by Kazmortransflot, a KMG subsidiary. The final leg of the journey was completed through the Adriatic pipeline, operated by Croatian pipeline company JANAF, and delivered to MOL’s Százhalombatta refinery near Budapest.

Following the tanker’s arrival in Croatia, representatives from KMG, MOL Group, and JANAF met to discuss further collaboration. As a result of the talks, KMG and MOL signed a framework agreement outlining plans for future oil deliveries.

KMG emphasized that this new export corridor significantly enhances Kazakhstan’s access to European energy markets. While the Druzhba pipeline remains a key route for delivering Kazakh oil to Germany, the Adriatic corridor offers a vital alternative and increases the resilience of regional energy supply chains.

Historically, Hungary has relied on Russian oil delivered through the southern branch of the Druzhba pipeline, which currently supplies around 58 percent of the country’s total oil demand. Kazakh crude is similar in quality to Russian oil, making it a viable substitute as EU countries seek to reduce dependence on Russian energy.

According to customs data, Hungary did not import any Kazakh oil in 2024. In contrast, neighboring countries increased their imports. Romania, where KMG owns two refineries and a fuel station network, imported 4.5 million tonnes of Kazakh oil worth 2.7 billion dollars. Bulgaria, where KMG is considering the purchase of a Lukoil refinery, imported 424,500 tonnes of Kazakh oil in 2024 - a 47-fold increase over the previous year, totaling 247.4 million dollars in value.

With the launch of this new export route, Kazakhstan positions itself as a more prominent and flexible supplier to Europe, amid shifting energy dynamics and geopolitical pressures.

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