Latest Market News

Energy firms on alert after flooding in central Europe

  • : Electricity, Natural gas, Oil products
  • 24/09/16

Torrential rain has led to major flooding across large swathes of central and eastern Europe, causing power outages and significant damage to transport infrastructure in southwest Poland and the Czech Republic. Parts of Austria, Germany, Hungary, Slovakia and Romania are also affected.

In Poland, most of the affected areas so far are in the southwest part of the country close to the border with the Czech Republic including the towns of Jelenia Gora, Klodzko, Nysa and Glucholazy. Urban areas further down the Odra river are also at risk including the cities of Wroclaw and Opole, where elevated water levels are expected in the coming days.

The Polish government held an emergency meeting earlier today. Prime minister Donald Tusk said he has ordered preparations for the declaration of a state of natural disaster.

Polish utility company Tauron, which operates the electricity distribution system in the worst affected area, said some of its infrastructure was disconnected in several towns including Klodzko and Glucholazy. Polish train operator PKP Intercity suspended passenger rail traffic to and from the Czech Republic on 15 September until further notice. And local TV showed images of damaged road and waterways infrastructure, including bridges and dams as well as retail fuel stations.

Polish biofuel firm Bioagra, which operates a bioethanol plant near the flood-hit town of Nysa, told Argus that the facility continues to operate normally.

In the Czech Republic, Orlen Unipetrol — operator of 108,000 b/d Litvinov and 66,000 b/d Kralupy refineries — said all its production sites continue to operate although the company has shut 11 of its service stations in the country. The firm said its crisis management team at each production site is monitoring the situation and is in contact with authorities.

Hungarian oil firm Mol — which operates service stations in Poland, the Czech Republic and Slovakia, as well as refineries in Hungary and Slovakia — told Argus that preparatory flood prevention works are underway. It is in contact with authorities and there is currently no threat to security of fuel supply, it said.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more