1. 2nd JANAF’s Conference Challenges of crude oil diversification,
capacities and services of JANAF
Damir Vrbic, JANAF, Commercial Division
ZAGREB, 24 November 2016

2. JANAF - in general
JANAF – international oil pipeline for supply of refineries in South Eastern and Central Europe
JANAF system consists of:
622 km long pipeline
• Omišalj Terminal
• Sisak Terminal
• Virje Terminal
• Slavonski Brod Terminal
• JANAF-Žitnjak, Zagreb – Petroleum Products Terminal
Activities:
- Pipeline transport of crude oil: 37% for local users and 63% for foreign users
Storage of crude oil and petroleum products (39,3% of total revenues in 2015)
212 million tons transported in total, without a single accident
2.753 tankers in total, without a single accident
- 9 September 1974 – Construction contract for use
of JUNA
First tanker – December 1979
Peak in 1991: expected transport of 12 million tons; 16 September interruption of transport; realized transport up to then 8,7 million tons
Construction of new storage tank farms at Sisak, Omišalj, Žitnjak
2013: reinclusion of MOL in South supply route

3. JANAF in figures

4. JANAF capacities CAPACITIES, (MTA) INA-RIJEKA REFINERY 7,00
CAPACITIES, (MTA)
INA-RIJEKA
REFINERY
7,00
INA-SISAK REFINERY
8,00
OPTIMA BROD,
NIS, SERBIA
14,00
TRANSIT, HUNGARY, SLOVAKIA
DESIGNED CAPACITY, OMIŠALJ-SISAK PIPELINE
34,00
JANAF INSTALLED CAPACITY
20,00 +
Crude oil transport in ,2 mil. tons
,3 mil. tons
,9 mil. tons
,4 mil. tons
,3 mil. tons
,6 mil. tons
,4 mil. tons
,0 mil. tons
,2 mil. tons
again 7 mil. tons ?
User / year in tons
1990
1991
INA – Oil Refinery Sisak
Nafta Lendava - Slovenia
Oil Refinery Brod - BIH
NIS - Srbia
Hungary
Slovakia
TOTAL 4

5. CAPACITIES OF JANAF PIPLINE SECTIONS
Omišalj-Sisak: 34 mil. t
Sisak-East: mil. t
Sisak-North: mil. t

6. European oil pipeline system and supply routes around JANAF
ADRIA
JANAF

7. Competitiveness of oil pipelines
A possibility of supply from several directions, together with an option of transport via the tanker port, represents one of the greatest benefits for the security of supply
A choice of supply direction – economic, geopolitical and other factors
The competitiveness itself of a certain route will depend on the crude oil purchase costs, transportation distance and transport mode (by tankers, oil pipeline, products pipeline) having their specific features
Tariffs
Distance
Crude oil purchase costs

8. Crude oil price in $/bbl for the last 3 months
- crude oil price – the most important factor in competitiveness, price differences depend upon quality, purchase place, CIF ,FOB, contracts
- larger quantities of Kazakh, Iraqi and Iranian crudes on the market
- significant difference is observed as to the price of crude oil transportation – advantage given to the maritime transport
- tanker port provides greater flexibility as regards pipeline access and crude oil purchase ( $$$ )
- increse in crude oil transport by JANAF from the Omišalj direction is to be realistically expected; arising needs

10. Competitive routes

11. later JANAF, 40 years later
JANAF increasing role in European security of crude oil supply
The diversification of the crude oil sources and a possibility of
partial replacement of oil for optimizing the crude oil pool
indicate a high development of oil infrastructure
present in Central and Eastern Europe
later

12. New services / new possibilities
Activity of transport
Crudes refined in Europe (source: dr.sc.E.Cerić)
Crude oil characteristics, adjustment to new era

13. New services Why blending?
Requirements of users
Economic variable (mix/blend of cheaper and more expensive crude gives better financial result)
Possibility of changing crude specifications
Quality
KBT/EB
Siberian light
Blend 50:50
Density at 15°C
873,3
848,6
862,8
Sulphur
2,798
0,573
1,770
Pour point
-48,0
-11,0
-33,0
Viscosity at 20°C
16,291
8,706
11,49
API
30,44
35,16
32,42

14. Direct economic benefit from crude oil blend Blend Kirkuk – Azeri compared to REB in $/bbl

15. Direct economic benefit from crude oil blend Blend Azeri – Kirkuk compared to REB in $/bbl

16. View into the future Crude oil mixing successfully performed
Transport increase - increasing role in European security of crude oil supply
Construction of new storage tanks
Reconstruction & Upgrade of Storage Facilities and Infrastructure at Omišalj Terminal
Quality
KBT/EB
Siberian light
Blend 50:50
Density at 15⁰C
873,3
848,6
862,8
Sulphur
2,798
0,573
1,770
Pour point
-48,0
-11,0
-33,0
Viscosity at 20⁰C
16,291
8,706
11,49
API'
30,44
35,16
32,42

17. Terminal with complete service!

18. Thank you!