Germany's PCK Schwedt refinery faces output cuts without Russian oil
Reuters
Published May 05, 2022 15:22
Updated May 05, 2022 15:58
LONDON (Reuters) -Germany's 233,000 barrel-per-day PCK Schwedt refinery is set to reduce output as it stops using Russian oil, which it now receives via the Druzhba pipeline, the chief executive of its minority shareholder Shell (LON:RDSa) said on Thursday.
PCK Schwedt, majority-owned by Russia's Rosneft, supplies Berlin and large parts of eastern Germany with gasoline, diesel and jet fuel and an alternative pipeline via the port of Rostock cannot fully replace Druzhba.
Germany is in talks with Poland about the possibility of routing some supplies from the port of Gdansk to Schwedt.
The European Union is planning to ban Russian oil from the end of this year, although some countries dependent on Russian pipeline oil such as the Czech Republic, Bulgaria and Hungary have voiced concerns over the plan.
Shell Chief Executive Ben van Beurden told a conference call that stopping Russian purchases "will probably mean that that refinery will be turned down quite significantly because the incoming logistics are constrained and the refinery is not configured for anything else but Urals", a Russian crude.
He added that while there was some underloading of European refineries other than PCK Schwedt when Shell first stopped buying Russian oil in the wake of the Ukraine conflict, they were now back at full capacity loadings.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.