Petroleum-based substances - PCK-induced hangover concern grips mayor over refinery issues.
The impending fate of the PCK oil refinery in Schwedt leaves Mayor Annekathrin Hoppe (SPD) of Schwedt hesitant about its future. Additionally, the city's commercial tax income has significantly dwindled to the tune of millions. To cope with this, a budget freeze is now in effect, yet R&D of the industrial site should be financed by both federal and state authorities.
Confusion over pipeline ownership
Stressing the uncertainties plaguing her, Hoppe admitted to the German News Agency that the ongoing controversy surrounding the PCK refinery's ownership troubled her immensely. "This is a massive worry for me." Notably, the refinery in Northeastern Brandenburg is under the ownership of Rosneft, a Russian state-owned company. While the federal government possesses stewardship over the Rosneft shares, plans suggest that Russian ownership of the refinery may end completely. However, the specifics of how this transition may occur remain undecided.
Moreover, the prospect of obtaining federal funding to rebuild the oil pipeline from Rostock harbor to Schwedt looms uncertain. Yet, securing the EU Commission's approval for these aids is prerequisite. "This creates quite a conundrum in terms of pipeline refurbishment funding," Hoppe explained.
Expected EU Commission ruling perplexes all parties.
Ralf Schairer, PCK's CEO, anticipated the EU Commission's approval for €400 million in aids by Christmas 2023. However, Left politician Christian Görke was informed by the German government earlier this week that "No information can be given on the timeframe."
Görke also raised concerns about the oil supply to the refinery following its termination of Russian oil imports due to Russia's attack on Ukraine. Instead, oil has been acquired from other countries, like Kazakhstan. This year, cooperating Kazakhstani producers have offered to double the amount of oil supplied to Schwedt to 2.4 million tons per annum. Despite this, no response has been provided from the German side.
The lack of response, as Görke saw it, shirked the opportunity to increase the security and stability of PCK production around to 80%-90%, considering its current utilization rate of 70%. PCK has an oak capacity of 11.5 million tons of oil annually.
Mayor Hoppe, however, assured that the refinery ran smoothly and that preparations for hydrogen production by 2030 were ongoing.
Another workplace issue crops up in relation to paper manufacturer Leipa.
Hoppe also expressed her anxieties about Leipa, Schwedt's second-biggest employer, who is considering around 100 lay-offs and shutting down a production line. Leipa, though, is also actively developing new products for the future – as testified by Hoppe's statement. On Tuesday, she expected to attend a conference in Schwedt where Leipa would test a lab for natural fibers and old cloth fibers, collaborating with the municipality.
The city plans a slew of other projects, coupled with economizing.
The construction of a startup transformation center and workshops is anticipated to begin in 2025, with the city to contribute €900,000 over 4 years out of a projected total expenditure of €18 million. Additionally, an industrial track is proposed to enhance the estuary's connection to an investment of approximately €110 million. Hoppe revealed a planned improvement in the train connection towards Stettin. However, her concerns about the city's current financial conditions are quite real, given the budget freeze and a shortfall of €10 million in commercial taxes for next year. "In the years ahead, there'll be no respite," she shared. "We must ponder which expenses can be spared."
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- The EU Commission's future decision on funding for the oil pipeline from Rostock harbor to Schwedt is causing concern for Mayor Hoppe, as it could impact the refinery's future operations.
- Despite the concerns, Mayor Hoppe is confident that the PCK refinery is running smoothly and preparations for hydrogen production by 2030 are ongoing.
- The future of the PCK oil refinery in Schwedt is uncertain due to its current ownership by Rosneft, a Russian state-owned company, and plans for Russian ownership to end.
- Christian Görke, a Left politician, has raised concerns about securing oil supplies for the refinery following the termination of Russian oil imports due to Russia's attack on Ukraine.
- Kazakhstani producers have offered to double the amount of oil supplied to Schwedt, but the German side has yet to respond to this proposal.
- The lack of response from the German side may be missing an opportunity to increase PCK's production security and stability, as the current utilization rate is only 70%.
- Mayor Hoppe has expressed her anxieties about Leipa, Schwedt's second-biggest employer, who is considering lay-offs and shutting down a production line, but is also developing new products for the future.
- The city of Schwedt has plans for a startup transformation center, an industrial track, and improvements to the train connection towards Stettin, despite its current financial challenges.
- Rosneft's PCK refinery in Rostock, Poland, is also facing challenges and has reportedly begun talks with the German SPD about the possible sale of its shares in the refinery.
Source: www.stern.de
