Refining and petrochemical group ORLEN Unipetrol, Czech oil pipeline operator MERO ČR and the Administration of State Material Reserves have signed a memorandum of cooperation. Its aim is to further strengthen the security of oil supply to the Czech Republic, ensure the efficient use of state emergency reserves and deepen cooperation in their storage and rotation. A specific step will be the planned replacement of part of the existing REB crude oil reserves with CPC Blend* crude oil and the assessment of conditions for its long-term storage at the Central Crude Oil Tank Farm in Nelahozeves..
ORLEN Unipetrol, MERO ČR and the Administration of State Material Reserves of the Czech Republic have signed a memorandum of cooperation. The partnership brings together MERO ČR’s expertise in oil transportation and storage, the Administration of State Material Reserves’ responsibility for the country’s emergency reserves of crude oil and petroleum products, and ORLEN Unipetrol’s refining capacity. In the current volatile geopolitical and macroeconomic environment, coordination between these three entities is essential to further strengthen the Czech Republic’s energy security and the stability of the domestic fuel market.
Czechia makes use of new sources of crude oil
Following the move away from Russian crude oil, which previously reached Czechia via the Druzhba pipeline, the domestic refineries in Litvínov and Kralupy nad Vltavou have been supplied via the TAL/IKL pipeline system since March last year. Through this system, crude oil delivered by tankers to the Italian port of Trieste from oil fields around the world is transported to both refineries. Currently, supplies most frequently originate from the Middle East and the Caspian and North Sea regions. These crude oils have different characteristics. The Kralupy nad Vltavou refinery processes exclusively lower-sulphur crude oil, while the Litvínov refinery mainly processes crude oil with a higher sulphur content.
Within the partnership, ORLEN Unipetrol acts as the crude oil processor. To ensure a stable supply to the Czech market, it is therefore important not only to secure sufficient volumes of crude oil, but also to maintain an appropriate mix of crude grades corresponding to the technological capabilities of both refineries, together with sufficient reserves in the event of supply restrictions. One of the main objectives of the cooperation is therefore to gradually align the composition of emergency reserves with the types of crude oil routinely processed in Czech refineries, thereby ensuring their efficient use in the event of a crisis.
“The Czech Republic’s energy security depends on the diversification of crude oil sources, the reliability of their transportation, sufficient storage capacity, and our ability to process them efficiently in domestic refineries. We therefore see this memorandum as a logical continuation of our joint efforts to ensure sufficient supplies of petroleum products amid today’s turbulent geopolitical environment. It builds on the project to increase the capacity of the TAL pipeline from the Italian port of Trieste and on the technological modifications made to our refineries in previous years, thanks to which we are now able to process crude oil of non-Russian origin. The Litvínov and Kralupy nad Vltavou refineries use different technologies and require different grades of crude oil. It is therefore important to have the appropriate reserves available so that we can respond flexibly to potential restrictions or disruptions in the supply chain. In doing so, we strengthen the stability of production at our refineries and the reliability of fuel supplies to the Czech market. ORLEN Unipetrol thus continues to fulfil its role as a key fuel supplier to the Czech market under the new conditions as well,” says Milan Brejchal, Member of the Board of Directors of the ORLEN Unipetrol Group responsible for production.
MERO ČR to assess conditions for storing CPC Blend crude oil
The role of MERO ČR builds on the need to ensure sufficient reserves and their availability. The company is responsible for transporting crude oil to the Czech Republic, storing it, and safeguarding the state’s emergency crude oil reserves at the Central Crude Oil Tank Farm in Nelahozeves. Under the memorandum, it will contribute in particular its expertise in operating the Central Crude Oil Tank Farm in Nelahozeves and its experience with the technical and safety requirements of crude oil storage.
It is here that the conditions for the long-term storage of CPC Blend crude oil will be tested in practice and changes in its properties monitored. In the first phase of the cooperation, REB crude oil is expected to be replaced with CPC Blend in one storage tank at the Central Crude Oil Tank Farm in Nelahozeves, up to a maximum volume of 125,000 m³.
“The security of crude oil supply to the Czech Republic depends both on reliable pipeline infrastructure and on sufficient and appropriately structured emergency reserves. Within this system, MERO ČR is responsible for crude oil transportation and the safe storage of the state’s emergency reserves. Under the memorandum, we will use our technical and operational expertise to assess the conditions for the long-term storage of CPC Blend crude oil at the Central Crude Oil Tank Farm in Nelahozeves. Our common objective is to ensure that Czechia has crude oil reserves that can be used safely and efficiently whenever needed,” says Zdeněk Dundr, Vice-Chairman of the Board of Directors of MERO ČR.
Safe storage of state crude oil reserves
The practical experience gained from trial storage, together with the results of monitoring quality and operational parameters, will subsequently be used to assess the suitability of CPC Blend crude oil for long-term storage as part of the Czech Republic’s emergency reserves.
This brings the cooperation to the third partner to the memorandum, the Administration of State Material Reserves, which is responsible for building and managing the state’s emergency reserves of crude oil and petroleum products.
“This memorandum is another step towards ensuring that Czech reserves contain only non-Russian crude oil. Put simply, we will now exchange one tank of Russian crude oil with Unipetrol for non-Russian CPC crude, which has the advantage that it can be used by both Czech refineries. However, there is currently no experience with storing this type of crude oil, so MERO will monitor its quality parameters. Should they deteriorate, ORLEN Unipetrol has committed to replacing the crude oil with another grade,” said Pavel Švagr, Chairman of the Administration of State Material Reserves.
The Administration of State Material Reserves already replaced half of its Russian crude oil stocks during 2025, taking advantage of interruptions in supplies through both pipelines. At that time, ORLEN Unipetrol took over several tanks of Russian crude oil and subsequently returned non-Russian crude oil to the Czech reserves. Specifically, these were Azeri Light, which is processed at the Kralupy nad Vltavou refinery, and Johan Sverdrup, which is used by the Litvínov refinery. The Czech Republic currently has reserves suitable for both refineries.
The Litvínov and Kralupy nad Vltavou refineries operated by the ORLEN Unipetrol Group produce fuels and petrochemical products for both domestic and international markets. The Litvínov refinery is the largest refinery in the Czech Republic, with a crude oil processing capacity of up to 5.8 million tonnes per year. It specialises in heavier crude oils with a higher sulphur content and is equipped with advanced deep-processing technologies. In addition to fuels, it produces key petrochemical feedstocks such as ethylene, polyethylene and polypropylene.
The Kralupy nad Vltavou refinery has an annual processing capacity of approximately 3.3 million tonnes of crude oil. It focuses on light, low-sulphur crude oils and primarily produces automotive petrol, diesel and aviation fuels.
* CPC Blend is a mixture of crude oils originating in Kazakhstan. It is transported via the Caspian Pipeline Consortium pipeline system to the Black Sea and from there by tanker to the Italian port of Trieste. From Trieste, it is transported to the Czech Republic via the international TAL (Transalpine Pipeline), which connects in Germany to the IKL (Ingolstadt–Kralupy–Litvínov) pipeline.
The ORLEN Unipetrol Group is the largest refining and petrochemical company in the Czech Republic. It focuses on crude oil processing and the production, distribution and sale of fuels and petrochemical products – particularly plastics and fertilisers. In all these areas, it is a major player on both the Czech and Central European markets. The ORLEN Unipetrol Group comprises refineries and production plants in Litvínov and Kralupy nad Vltavou, the Paramo company in Pardubice, the Spolana company in Neratovice, the REMAQ company in Otrokovice, a research centre in Brno and the engineering and design company ORLEN Projekt. ORLEN Unipetrol also operates the ORLEN network of petrol stations in the Czech Republic, Slovakia and Hungary. ORLEN Unipetrol is one of the largest companies in the Czech Republic in terms of turnover. It employs over 3,500 people. ORLEN Unipetrol is also a socially responsible company, particularly in the areas of supporting sustainable development, education, local communities and the environment. The group’s high standards of employee care are confirmed by the prestigious international Top Employer certificate, which it was awarded in 2023, 2024 and 2025, as well as a number of national awards. In 2005, ORLEN Unipetrol became part of the ORLEN Group, which is the largest energy company in Central Europe.
Contact: Pavel Kaidl, press officer, telephone: +420 736 502 520, email: pavel.kaidl@orlenunipetrol.cz
MERO ČR, a.s. (International Oil Pipelines), the owner and operator of the Czech section of the Druzhba pipeline and the IKL pipeline, is the sole transporter of crude oil to the Czech Republic and the country’s leading company providing storage capacity for emergency strategic crude oil reserves.
Both pipelines terminate at the Central Crude Oil Tank Farm in Nelahozeves, where the company has constructed a total of 17 crude oil storage tanks with an overall storage capacity of 1,675,000 m³.
The company also owns a subsidiary in Vohburg an der Donau, Bavaria, which manages the German section of the IKL pipeline and the local crude oil tank farm with a storage capacity of 200,000 m³.
Since December 2012, MERO ČR, a.s. has held a 5% stake in the companies owning and operating the TAL pipeline.
Contact:
Barbora Putzová, MERO ČR a.s.,
Veltruská 748, 278 01 Kralupy n. Vltavou
phone: 725 919 868, nebo 315 701 319
e-mail: putzova@mero.cz
web: www.mero.cz