Pipeline operators in Poland and Russia have reached an agreement ensuring the continued transit of Kazakh oil to Germany, effectively removing the risk of a disruption that had loomed over June, Reuters reported.
The potential halt was first signaled in April when Transneft, Russia's state-controlled pipeline company, warned Kazakhstan that oil transit to Germany could cease due to difficulties in certifying oil flow meters in Poland, a requirement set for June 5. This impasse had arisen amid concerns from Poland's state-owned pipeline operator PERN about potentially breaching Western sanctions against Russia.
The resolution came through a collaborative agreement involving PERN, Transneft, and Germany's PCK Schwedt refinery. According to sources from Poland, Germany, and Russia, a Slovak company will now handle the servicing of the oil flow meters on the Polish segment of the Druzhba pipeline, thus alleviating the sanctions-related concerns for PERN. The periodic certification of these meters, necessary to meet Russian standards, will now proceed without the risk of sanctions breaches.
Transneft's initial warning stressed Kazakhstan's dependence on Russian infrastructure for its oil exports, with Kazakhstan's flow amounting to 1.5 mn barrels per day, representing 1.5% of the global oil supply, predominantly traversing various Russian pipelines.
The Druzhba pipeline, one of the world's largest oil conduits with a capacity of 2 mn barrels per day, has experienced reductions in flow since Russia's invasion of Ukraine, as the European Union has stopped purchasing Russian oil.
Currently, the northern leg of the Druzhba system, which links Germany via Poland and Belarus, is utilized for Kazakhstan’s KEBCO oil exports destined for the Schwedt refinery. This refinery plays a crucial role in supplying fuel to Berlin.
Though the volume of Kazakh oil transported is relatively modest, expected to reach 1.2 mn metric tons this year, it is vital for Germany's strategy to eliminate reliance on Russian oil—a commitment made by Berlin in 2022 following the invasion of Ukraine.
On May 21, the Kazakh state oil company KazMunayGaz announced an extension of its contract to supply the Schwedt refinery until the end of the year. A spokeswoman for PERN confirmed the company's efforts to find a compliant solution in collaboration with contractors.
Kazakhstan’s pipeline operator Kaztransoil stated that there are currently no restrictions on shipping Kazakh crude oil to the Adamowo base on the Polish section of the pipeline near the Belarusian border.
The Energy Ministry of Kazakhstan confirmed that "Kazakhstan and Russian parties have agreed to ship via Transneft and Druzhba trunk systems 1.2 mn tons of crude from Kazakhstan to Schwedt refinery."
While Transneft did not immediately respond to requests for comment, Germany's economy ministry also declined to comment on company-specific matters. A majority stake in the Schwedt refinery has been under German government trusteeship since September 2022, reflecting Berlin's strategic oversight of critical energy infrastructure.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)