Hungarian energy company MOL Group said it is continuing to produce base oils, albeit at reduced rates, as the company recovers from a fire at its Százhalombatta refinery.
The refinery plays an important role in the region’s fuel and base oil supply chain, being one of the largest in Central and Eastern Europe, with crude processing capacity of 165,000 barrels per day, or about 8.1 million metric tons annually.
It is also one of a shrinking number of European API Group I plants, producing SN150, SN350 and SN500 grades.
MOL said production rates should return to normal once the damaged unit is back in service.
“We have not stopped producing base oil. Production is ongoing, however at reduced capacity due to the AV-3 incident last year at the Danube Refinery,” a company spokesperson told Lube Report. “We expect it could resume to full capacity following the start-up of the AV-3 plant, currently expected in Q3 2026.”
Output was reduced after a fire last October in the refinery’s AV-3 unit, which processes a significant portion of the refinery’s crude intake. Operations have been constrained while repair and reconstruction work continues.
Lubricant and base oil markets are grappling with heightened uncertainty following U.S.-Israeli attacks on Iran and the closure of the Strait of Hormuz, a critical shipping route for crude oil and petroleum products. The disruption has fueled concerns over feedstock availability, supply chains and pricing across global energy and lubricant markets.