Poland’s PKN Orlen will ship at least three cargoes of Norway’s Johan Sverdrup crude in March to the Lithuanian port of Butinge to supply its Mazeikiu refinery, Refinitiv Eikon data showed, as the refiner replaces Russian Urals oil.

Although the European Union has yet to ban Russia oil, sanctions on Russian financial institutions have made it difficult to finance and insure cargoes of Urals, adding to the reasons for buyers to consider seeks alternative sources.

Until now the Mazeikiu refinery in Lithuania has mostly relied on Urals, but Norway’s medium sour grade Johan Sverdrup will arrive in Butinge for the first time this month, the data shows.

“PKN Orlen is buying spot crude from several directions both in Europe and outside Europe,” a spokesperson told Reuters, adding that it planned to buy other North Sea grades, as well as West African Forcados and Bonny Light and U.S. WTI, Bakken and Mars for its plants in Lithuania, Poland and the Czech Republic.

PKN Orlen said earlier this month it would also continue to buy Russian crude oil to ensure the security of supply, while also saying it had approached Saudi Aramco for extra non-Russian oil.

Shipping data shows three cargoes of Johan Sverdrup of 80,000 tonnes each, delivered by OSLO TS, IONIC ANAX and SOLA TS vessels, will arrive in Butinge in March, along with just two cargoes of Urals, one cargo of CPC Blend and one cargo of Forties.

Of European grades, Johan Sverdrup is the closest in quality to Urals, although it has a lower sulphur content, making it slightly easier to refine.

High demand for the grade has lifted its prices with cargoes heard trading as high as dated Brent plus $5 per barrel, compared to Urals most recent estimates of a discount of $30 per barrel.
Source: Reuters (Reporting by Reuters, additional reporting by Marek Strzelecki in Warsaw; editing by Barbara Lewis)