Dietmar Woidke Pushes for Refinery Security Assurances Amid Oil Supply Changes
New government assured of commitments for the refinery by Woidke - Woidke seeks renewed government assurances concerning oil refineries' sustainability
Hey there! Let's dive into the pressing issue surrounding the PCK oil refinery in Schwedt, Brandenburg.
Brandenburg's top dog, Dietmar Woidke (SPD), is urging the new federal government to ensure the continued operation of the PCK refinery and secure its future. Woidke plans to invite the incoming Federal Minister of Economics, Katherina Reiche (CDU), to visit the industrial facility to discuss matters further. The call came during a rally in Schwedt titled "Save the PCK Refinery" – attended by approximately 2,000 folks, as per the rally organizers.
PCK CEO, Ralf Schairer, highlighted the tough market conditions and intense competition faced by refineries in Germany and Europe due to higher costs. With the refinery no longer receiving Russian oil as a result of the Russian invasion of Ukraine, its future is up in the air, and the ownership structure of PCK (with around 1,200 employees) remains undecided.
Woidke emphasized that it's the responsibility of the federal government to ensure full PCK operation and secure supply, as the current 80% utilization rate is insufficient for the long haul. "We urgently need more crude oil."
Woidke also stressed the need for the federal government to uphold previous funding promises for investments in the refinery and the economy of Schwedt. Given the federal government's trusteeship over the majority shares of Rosneft in PCK, it carries significant responsibility in this matter.
Furthermore, Woidke expressed his hope that the Union-SPD coalition in Berlin would take "very clear diplomatic initiatives to achieve a fair peace in Europe, in Ukraine." He stated: "We also want to return to good economic relations with Russia then."
PCK CEO Schairer warned of a potential loss of German refinery capacities and chemical plants due to international competition and higher costs, citing the US chemical company Dow's possibility of shutting down plants in Saxony-Anhalt and Saxony. Schairer urged the new federal government to make a firm statement that Germany, as the largest mineral oil market in Europe, should remain a refinery location.
The oil refinery in northeastern Brandenburg faced challenges when Russian oil supplies were cut off via the Druzhba pipeline for over two years. Since then, the plant has relied on alternate supply sources, including a pipeline from Rostock, small volumes through the Polish port of Gdansk, and oil from Kazakhstan. However, these substitutes only allowed the plant to operate at around 80% capacity.
To counteract this financial strain, Dietmar Woidke has proposed several measures and proposals to secure the PCK refinery's future without Russian oil. These include:
- Exploring alternative oil supplies from other pipelines and ports.
- Evaluating the political and economic feasibility of resuming Russian oil deliveries if conditions allow.
- Government trusteeship and restructuring aimed at finding new ownership beyond Russian control, while maintaining refinery operations.
- Plans (albeit stalled) to shift towards hydrogen production as part of a long-term decarbonization and energy transition strategy.
The situation calls for urgent and multifaceted solutions that balance geopolitical realities with regional economic needs. Here's to a secure and prosperous future for the PCK refinery and Schwedt!
- Dietmar Woidke, the regional leader of Brandenburg, Germany, is urging the incoming federal government to ensure the continued operation of the PCK oil refinery in Schwedt, Brandenburg, and secure its future.
- Woidke plans to invite the Federal Minister of Economics, Katherina Reiche (CDU), to visit the industrial facility to discuss matters further, after attending a rally titled "Save the PCK Refinery" with approximately 2,000 attendees.
- PCK CEO, Ralf Schairer, highlighted the tough market conditions and intense competition faced by refineries in Germany and Europe due to higher costs, with the refinery no longer receiving Russian oil as a result of the Russian invasion of Ukraine.
- Woidke emphasized that it's the responsibility of the federal government to ensure full PCK operation and secure supply, as the current 80% utilization rate is insufficient for the long haul.
- Woidke also stressed the need for the federal government to uphold previous funding promises for investments in the refinery and the economy of Schwedt, given its trusteeship over the majority shares of Rosneft in PCK.
- Woidke expressed his hope that the Union-SPD coalition in Berlin would take "very clear diplomatic initiatives to achieve a fair peace in Europe, in Ukraine."
- PCK CEO Schairer urged the new federal government to make a firm statement that Germany, as the largest mineral oil market in Europe, should remain a refinery location, citing the potential loss of German refinery capacities and chemical plants due to international competition and higher costs.
