PCK Schwedt: Capacity utilization back at a good 80 percent
One and a half years after turning away from Russian crude oil, the important refinery PCK in Brandenburg, Germany, achieves an utilization rate of around 80 percent with the help of new supply routes. This is what can be achieved with current supply sources, said PCK CEO Rolf Schairer on Monday on the sidelines of a visit by the Federal Government's Eastern Commissioner Carsten Schneider. The figure is significantly above the utilization rate at the beginning of 2023, but below the levels of previous years, according to the company.
The refinery had long processed only Russian oil from the Druzhba pipeline. At the beginning of 2023, the Federal Government stopped the import of Russian pipeline oil due to the attack on Ukraine. Currently, 70 percent of the crude oil comes via a pipeline from the port of Rostock; the remaining 30 percent comes via the ports of Danzig and from Kazakhstan and is delivered via the Druschba pipelines.
To achieve an utilization rate of over 80 percent in crude oil processing, expansion of the Rostock pipeline would be necessary, Schairer said. The Federal Government has pledged €400 million for this. The money is ready, but the EU Commission's approval is still required, said Economic State Secretary Michael Kellner.
The approval procedure has been ongoing for months. Kellner did not specify when a decision could be expected. His ministry acts as an intermediary between the Commission and the owners, he explained. The owners also need to make a "contribution," Kellner emphasized. However, he also stressed: "PCK is secure. This also does not depend on these funding resources." The plant is on "solid ground."
It is still open whether more oil from Kazakhstan will be processed at PCK in the near future. The Kazakh government has offered to double the delivery of 100,000 tonnes per month. The latest figure was 120,000 tonnes, said Kellner. The Federal Government is in very close contact with the Kazakh side. An increase in deliveries is desirable. The refinery can theoretically process nearly one million tonnes of crude oil per month.
The expansion of the Rostock pipeline is essential for increasing PCK's crude oil utilization rate beyond 80%, as stated by PCK CEO Rolf Schairer. Currently, the refinery utilizes crude oil sourced from Rostock, Danzig, Kazakhstan, and the Druschba pipelines, with each contributing 70%, 30%, and the remaining fraction respectively. The Federal Government has allocated €400 million towards this project, but EU Commission approval is still pending.
