Schwedt refinery replaces Kazakh oil with South American crude
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The PCK Schwedt refinery in Germany has secured alternative crude supplies from South America, replacing Kazakh oil. The new deliveries will maintain the plant's capacity utilization at around 80%.
Supply Shift
The PCK Schwedt refinery in eastern Germany has found a replacement for Kazakh crude oil with supplies from South America, according to Inbusiness.kz. The new feedstock will allow the plant to maintain operations at roughly 80% of its capacity. The refinery had previously relied on Kazakh oil via the Druzhba pipeline.
Operational Impact
The shift ensures continued production at the 12 million tonne-per-year facility, which faced supply uncertainty after Germany reduced Russian oil imports. The South American crude will be delivered by tanker, requiring logistical adjustments. The refinery's utilization rate had dropped below 70% earlier this year.
German Government Support for Kazakh Oil
The German government is promoting Kazakh oil as a replacement for Russian supplies at the Schwedt and Leuna refineries. Starting in January, the refineries are expected to operate at 70% capacity using Kazakh crude.
Kazakh Oil Shipment Delay
Kazakhstan plans to begin crude oil shipments to Germany within days, possibly on the same day, according to Negocios TV. The delay in Kazakh supply had complicated Germany's efforts to replace Russian oil, as the PCK Schwedt refinery faced uncertainty.
What's Next
The refinery will need to adapt its processing units to the new crude grade over the coming months. It remains unclear whether long-term contracts with South American suppliers will be signed.
4 sources
Schwedt refinery replaces Kazakh oil with South American crude
