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Tuesday, March 28, 2023

Energy crisis: Rosneft Germany sees good talks for Kazakh oil

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Oil from Russia no longer reaches the PCK refinery via the Druzhba pipeline. So that there is enough fuel, there is oil from Rostock and Danzig. It should also flow from Kazakhstan.

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The co-shareholder of the Brandenburg PCK refinery, Rosneft Germany, has shown confidence in the fuel supply in view of planned oil deliveries from Kazakhstan.

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“We are in further talks,” said a spokesman for the subsidiary of the Russian oil company Rosneft. He described the talks as good. Rosneft Germany and the associated RN Refining & Marketing are under federal trusteeship. They hold a majority stake in the Schwedt refinery.

According to Rosneft Germany, the supply of fuel is not in danger even with oil via the port of Rostock. “If quantities are added via Gdansk, there will be no problems.” The first alternative delivery with oil via the Gdańsk port was already expected at the refinery. Crude oil from Kazakhstan is intended for this purpose. The scope and schedule are still open.

“We need all three options”

Rosneft Germany believes that not only oil from Rostock and Gdansk is necessary for sufficient utilization of the refinery, but also from Kazakhstan. “We need all three options,” said the spokesman. Since the turn of the year, following a decision by the federal government, no more Russian oil has been coming to PCK via the Druzhba pipeline. Instead, crude oil first flows through the port of Rostock.

The refinery is currently operating at just over 50 percent capacity. In addition, oil is to come via the port of Gdańsk. According to PCK, nine out of ten cars in Berlin and Brandenburg run on fuel from Schwedt.

Thanks to the quantities from Poland and Kazakhstan in January and February and an admixture, the capacity of the refinery can increase to around 70 percent according to the Federal Ministry of Economics. After upgrading the pipeline from Rostock to Schwedt, it could be 75 to 80 percent. The federal government does not consider a second pipeline to be necessary.

For a long time, the two subsidiaries of the Russian state-owned company Rosneft had shown no interest in turning away from Russian oil. As a result, the federal government effectively withdrew control of PCK from them via trusteeship. The refinery is to be converted in the medium term in order to be energy independent.

Source: Stern

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