Crude oil - PCK deadlock prompts concerns from the mayor over the refinery.
The impending uncertainties surrounding the future of the PCK oil refinery are causing anxiety for Schwedt's Mayor, Annekathrin Hoppe (SPD). Additionally, the city's industrial funding revenue has experienced a staggering decline, forcing the need for economical reductions while also striving to enhance the refurbishment of the industrial site through federal and state funds.
Concern over the pipeline and ownership dilemma
Hoppe mentioned to the German Press Agency that the unresolved ownership dilemma associated with PCK is a significant concern for her. "This concerns me deeply." PCK predominantly belongs to the Russian government-controlled company Rosneft - although the federal government manages the Rosneft shares through proxy. It has long been predicted that Rosneft would abandon the northeastern Brandenburg refinery and sell its shares. However, the specifics of this process remain in question.
Regarding the pipeline expansion, the question of whether and when the federal government can allocate millions for the enhancement of the pipeline from Rostock's port to Schwedt remains uncertain. The EU Commission has yet to grant approval for this subsidy. "This is a significant challenge with the subsidies for the pipeline extension," Hoppe stated. She hopes for a funding determination in the first half of the year, as the refinery is commemorating its 60-year anniversary with a celebration event on May 30. "That would be a lovely surprise."
PCK CEO Ralf Schairer previously anticipated EU Commission approval for 400 million euros in state support by Christmas 2023. The Left-wing politician Christian Görke foresees the pipeline funding impasse lasting indefinitely. However, the refinery's operations are successful, and hydrogen production preparations continue, Hoppe noted. The refinery has been functioning without Russian oil for nearly a year and a half due to their attack on Ukraine. In turn, substitute oil supplies come from Kazakhstan. The refinery plans a climate-friendly future centered around hydrogen.
Worry for the paper manufacturer, Leipa, also weighs on the mayor
Hoppe is also fretting about the paper manufacturer, Leipa. The second significant company in Schwedt is set to reduce approximately 100 jobs and shut down a production line. On the other hand, Leipa is engaged in the research and development of future products. For example, a joint effort is underway at a new research lab to test the processing of natural fibers and recycled fiber fabrics. Projects such as this will be explored at a future conference in Schwedt happening on Tuesday.
Schwedt is brainstorming new future projects while implementing savings
The refurbishment of a transformation center, incorporating start-ups and workshops, is planned to begin in 2025. The city's share of 900,000 euros over four years from its budget is required for this project. Additionally, an industrial railroad, which will aid better accessibility to the port, is set to become a reality with investments totaling approximately 110 million euros. Hoppe announced that the rail connection towards Stettin will see improvements. Though the city's financial circumstances are strained, and there is a budget freeze for 2024, Hoppe acknowledged that they're short on income by 10 million euros in industrial taxes. "It won't improve in the upcoming years. We must decide which spending is attainable."
Read also:
- Tough return to normality in snow and ice
- Fewer unauthorized entries: Domino effect through controls
- Trial against BND employee from mid-December
- Xhaka leads Leverkusen to triumph in cup tournament, scoring two goals.
- The German Press Agency reported that the future of the PCK oil refinery's ownership, predominantly controlled by Rosneft, is a significant concern for Schwedt's Mayor Annekathrin Hoppe, due to potential abandonment and sale of shares.
- Hoppe expressed concern over the unresolved pipeline dilemma, as the specifics of the federal government's allocation of funds for its expansion from Rostock's port to Schwedt remain uncertain, with the EU Commission yet to grant approval for the subsidy.
- Rosneft has not used Russian oil at the PCK refinery for nearly a year and a half due to their attack on Ukraine, with substitute oil supplies coming from Kazakhstan.
- Hoppe mentioned that while the refinery's operations are successful, the paper manufacturer Leipa is facing challenges, with approximately 100 jobs set to be cut and a production line to be shut down.
- The Mayor is optimistic about Schwedt's future projects, such as the refurbishment of a transformation center in 2025, requiring a city budget investment of 900,000 euros over four years.
- Hoppe announced that an industrial railroad, which will aid better accessibility to the port, is set to become a reality with investments totaling approximately 110 million euros, with improvements planned for the rail connection towards Stettin.
- Despite the refinery's success and the implementation of savings, Hoppe acknowledged that the city's financial circumstances are strained, with a budget freeze for 2024 and a 10 million euro deficit in industrial taxes.
Source: www.stern.de
