PCK refinery again well utilized
The Oil Refinery in Schwedt is significantly important for the supply of Ostdeutschland and Poland. Russia stopped the oil deliveries after the attack on Ukraine. The future ownership is still unclear, but the utilization rate has grown again to over 80 percent.
The PCK Oil Refinery in Schwedt is once again operating at more than 80 percent capacity, despite the uncertainty over future ownership. This was announced by PCK management and Economic State Secretary Michael Kellner in Schwedt. In the past few months, the owners had not even been motivated to further increase the processing volume, "because the market isn't like that," said Kellner.
This refinery has great strategic significance because Ostdeutschland and Poland are dependent on the production there for their fuel supply. Their supply was considered uncertain in the face of the stoppage of Russian oil imports following the attack on Ukraine.
"This is a highly symbolic company," said the Eastern Commissioner of the German government, Carsten Schneider, during a visit to Schwedt. The uncertainty also gave the right-wing populist AfD a boost in the region.
Green politician Kellner welcomed the offer from Kazakhstan to deliver more oil than the previously agreed 100,000 tons. "I would also welcome it if it were to double," he said during a visit to the refinery. However, he pointed to the risk. Russia could interrupt the delivery of this oil at any time. "That's why Kazakhstan is just one of the pillars," he added.
Will the 400 million Euro really come?
Currently, 70 percent of the oil to be processed at PCK is supplied via a pipeline from Rostock, 15 percent via Danzig, and another 15 percent from Kazakhstan through the Druzhba pipeline, which runs through Russia.
The German government plans to expand the pipeline from Rostock for 400 million Euros, but the approval of the EU Commission is still missing. When the EU Commission will make a decision, Kellner could not say. Despite the installation of a new commission, officials in Brussels will deal with the case.
The PCK works council chairman Danny Ruthenberg called for a quick clarification. There is no longer any doubt among the workforce about the future of the refinery, personnel are being hired. But there is skepticism about whether the promised 400 million Euros will really come. Schneider said the money was already in the federal budget and they were just waiting for approval from Brussels.
Kellner: Schwedt will not fall back into Russian hands
An open question is what will happen to the 54.17 percent stake that the Russian energy company Rosneft currently holds. The German government extended the trusteeship for this stake again in March. In addition, it threatened to expropriate if Rosneft did not seriously look for a buyer. In September, the German government must decide again.
Cellner emphasized that the PCK-Refinery would not fall back into Russian hands again. "All options are on the table. We will not let this refinery fall back into Russian hands." Cellner did not want to disclose how far the Rosneft negotiations had progressed or whether he preferred a Polish buyer for the shares.
"It is important for us to establish an ownership structure that ensures we permanently have the refinery on stable ground," he stressed. Furthermore, he referred to the fact that Germany and Poland had agreed during the government consultations last week to continue supplying the refinery even in difficult situations.
The PCK refinery in Schwedt, which is crucial for the fuel supply of East Germany and Poland, was impacted by Russia's halt of oil deliveries post the attack on Ukraine. Despite the ongoing uncertainty about its future ownership, the refinery has managed to increase its utilization rate to over 80%.
Initial plans suggested expanding the pipeline from Rostock for the PCK refinery at a cost of 400 million Euros, but the EU Commission's approval is yet to be secured. This has raised doubts among the refinery's workforce about whether the promised funding will indeed materialize.
