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German refinery wants state aid to improve pipeline

Published by , Editorial Assistant
World Pipelines,

German oil refinery, PCK Schwedt has applied to the economy ministry for €400 million in state aid to help it upgrade the Rostock-Schwedt pipeline, the local authority in Brandenburg said on Tuesday 11 July following a meeting at the facility.

PCK head, Ralf Schairer informed officials of the requested aid at a meeting of a task force set up to secure the refinery's future in the wake of Russia's invasion of Ukraine. Russian energy group Rosneft has a majority stake in PCK Schwedt, which has traditionally supplied 90% of the fuel used in Germany's capital, Berlin.

In April, Germany approved a law that would allow a quick sale of Rosneft's stake in the refinery, but it's unclear when or how this might happen. Rosneft sued Berlin in October for taking control of its German unit, and its law firm said in April the German government's actions amounted to ‘expropriation’. Schwedt's other shareholders are oil majors Shell and Eni.

An agreement with Kazakhstan to supply oil to Germany ensures continuity in oil supplies at the refinery and allows it to increase capacity utilisation by about 10 percentage points, Brandenburg premier Dietmar Woidke said in a statement.


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