Keeping Schwedt's PCK Refinery Spinning: Woidke's Plea to the New Government
New administration assured of commitments concerning the refinery by Woidke - Government Official Urges New Assurances for Refinery Facilities from the Administrative Sphere
Hey there! Let's dive into the latest happenings around Brandenburg's PCK oil refinery in Schwedt. Dietmar Woidke, the regional Minister President (SPD), is making some serious waves, demanding guarantees from the new federal government to secure the refinery's future. He's got the new Federal Minister of Economics, Katherina Reiche (CDU), marked on his calendar for an inaugural visit to the industrial plant.
At a packed rally in Schwedt, Woidke invoked "Save the PCK refinery" as the motto, with approximately 2000 people in attendance. The PCK's CEO, Ralf Schairer, has been vocal about the tough market and fierce competition, lamenting the high costs disadvantage for European and German refineries in the global arena.
With Russian oil no longer an option due to the Russian invasion of Ukraine, the refinery's future hangs in the balance. Uncertainty surrounds the ownership structure of the PCK with its 1,200 employees.
Woidke insists that responsibility for the PCK's smooth operation and supply security lies with the new federal government. Despite the current 80% utilization rate, he argues it's not sufficient for the long haul. "We desperately need more crude oil," he asserted.
Woidke also emphasized that the federal government must deliver on previous commitments for investments in the Schwedt economy. Given its trusteeship over the majority shares of Rosneft in PCK, the federal government also holds significant responsibility in this matter.
Moreover, Woidke expects the soon-to-be-formed Union-SPD coalition in Berlin to take decisive diplomatic initiatives to attain a peaceful resolution in Europe and Ukraine. He hopes that post-conflict, economic relations with Russia will rebound.
PCK CEO Schairer put forth a warning about the erosion of German refinery capacities, citing the potential closure of two Dow plants in Saxony-Anhalt and Saxony. "This should serve as a wake-up call for Germany's industrial sector. It is imperative for the new federal government to publicly commit to maintaining Germany's standing as the largest mineral oil market in Europe," Schairer underscored.
Since the cessation of Russian oil supplies, the federal government took control of the German subsidiaries of Rosneft and their shares in PCK. The goal was for Rosneft to offload its 54% stake in PCK, and the pipeline expansion from Rostock to Schwedt was previously planned but has been stalled.
So, there you have it! The refinery's future is top of the agenda for Brandenburg's government, and it's all about securing a reliable supply of crude oil. Keep an eye on this space for more updates!
💡 Insights:
- Woidke is urging the new government to prioritize job guarantees for the PCK refinery, considering its significant impact on the regional economy.
- The German government may need to seek EU approval for state aid to help fund investments in the PCK refinery and pipeline expansion.
- Controversy surrounds the potential return of Russian oil to the PCK refinery, with some calling for a lifting of sanctions in the interests of operational stability.
- The PCK refinery has been granted a sulfur dioxide emission exemption to cope with the challenges of processing crude oils with higher sulfur content until 2027.
- There were initial plans to transition the PCK refinery towards hydrogen production, but these efforts have been put on hold currently.
- The new Federal Minister of Economics, Katherina Reiche, is expected to visit Brandenburg's PCK oil refinery in Schwedt, as regional Minister President Dietmar Woidke presses the new government for guarantees to secure its future.
- Woidke, at a rally in Schwedt, urged the federal government to increase crude oil supply to ensure the long-term operation of the PCK refinery, despite its current 80% utilization rate.
- PCK's CEO, Ralf Schairer, has voiced concerns over the high costs disadvantage faced by European and German refineries in the global market, citing the potential closure of two Dow plants in Saxony-Anhalt and Saxony as a warning.
- Woidke anticipates the Union-SPD coalition in Berlin to take diplomatic initiatives for a peaceful resolution in Europe and Ukraine, hoping for a rebound of economic relations with Russia post-conflict.
