Total’s German Leuna refinery to continue Russian crude imports in May
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© Reuters. FILEPHOTO: This photo shows the logo of TotalEnergies, a French oil-and gas company, at an electric car charging station near Paris and a petrol station at La Defense in Courbevoie. It was taken June 22, 2021. REUTERS/Gonzalo Fuent(Reuters) – TotalEnergies’ 240,000 barrels per hour Leuna refinery, Germany in Germany, is expected to continue to import Russian through the Druzhba pipe at least until May according to two sources who have knowledge of the matter.
Germany wants to get off Russian crude oil. This feeds Leuna as well as the PCK Schwedt (233,000 bpd) refinery. Rosneft is the majority owner. One option would be the expropriation Schwedt.
While sanctions against Russia have been avoided by the European Union, most traders and refiners are opting to cut their Russian oil purchases to avoid sanctions on Russia and its financial system.
According to diplomats, the European Commission has begun to prepare additional sanctions against oil.
Germany’s Economy Minister, Thomas Müller, stated that Russia’s dependence has dropped to 12% from 35%.
A spokesperson from Germany’s Economy Ministry said that the remaining 12.2% went to Schwedt, Leuna and was therefore unclear.
TotalEnergies declined to comment on a request. According to TotalEnergies, the company stated last month that it will end the Russian oil supply contract for Leuna’s refinery by 2022 and implement alternative options by importing oil through Poland.
TotalEnergies is able to import 300,000-350,000 tons of Russian Urals crude oil monthly via Druzhba. This pipeline feeds Leuna in accordance with long-term agreements with Surgutneftegaz or Gazpromneft.
The port of Rostock could supply part of the Druzhba’s PCK Schwedt with a pipeline. Some volumes might be diverted to Poland which, in turn, is looking for Russian oil replacement in its fuel supply chain.
Habeck stated also that Germany would use its oil reserves national to provide food for Leuna or PCK Schwedt. Shell’s shareholders are LON: ENI (BIT:).
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