As majors divest and sanctions bite, Germany’s refining base is fracturing — exposing Europe’s biggest economy to a tightening fuel crisis.
Nearly three years have passed since the Druzhba pipeline last supplied PCK Schwedt, and the refinery’s feedstock reality tells its own story. Once reliant on Russian flows, Schwedt is now running on discounted “Krakken” heavy sweet from Scapa Flow, UK — a makeshift supply chain that highlights both ingenuity and desperation.
Recent arrivals include:
| ARRIVAL | VESSEL | QTY | CGO | LAYDAYS | LOAD PORT | RATE | CHARTERER |
|---|---|---|---|---|---|---|---|
| ANCHORED | MINERVA CORALIA | 600 KB | H. SWEET | 04–06/11 | SCAPA FLOW | O/P | EXXON |
| ANCHORED | ADVANTAGE ANGEL | 700 KB | H. SWEET | 03–05/11 | SCAPA FLOW | O/P | TRAFIGURA |
Ownership of PCK Schwedt remains tangled: Rosneft 37.5% / Shell 37.5% / AET (ENI/Rosneft) 25%.
Prax had agreed to buy Shell’s 37.5% for EUR 155–190 million, but the deal collapsed, and with Prax now bankrupt, even its Lindsey refinery in the UK faces uncertainty.
Further north, BP is preparing to exit Gelsenkirchen, its main German refinery asset. Crude arrivals into Wilhelmshaven tell a similar story — diverse sourcing, but no clear long-term plan.
| ARRIVAL | VESSEL | QTY | CGO | LAYDAYS | LOAD PORT | RATE | CHARTERER |
|---|---|---|---|---|---|---|---|
| 23 NOV | MARAN PLATO | 700 KB | L. SWEET | 03–05/11 | U.S. GULF | 3.626M | BP |
| 20 NOV | MARAN ORPHEUS | 1.0 MB | L. SWEET | 30–01/11 | U.S. GULF | O/P | SHELL |
| 20 NOV | STARWAY | 1.0 MB | L. SWEET | 23–25/10 | U.S. GULF | 2.782M | PHILLIPS 66 |
| DISCHARGED | FRONT SILKEBORG | 1.0 MB | M. SWEET | 20–22/10 | GUYANA | 2.309M | BP |
Given this mix, Exxon would appear the logical long-term buyer, but like its peers, it is divesting from refining assets with thin or negative margins.
The broader regional picture is no more encouraging. Gunvor has been dealt a major blow after OFAC rejected its license request to acquire Lukoil International GmbH — blocking its plan to absorb the associated assets in Bulgaria and Romania. That decision leaves Europe without a natural successor to manage those downstream facilities, tightening the system further.
Gunvor CEO Torbjörn Törnqvist recently warned that Europe is “headed for a fuel crisis.” The evidence is mounting, and Germany is the first to show the cracks. With refineries under-owned, under-supplied, and under-invested, Europe’s industrial core is now reliant on opportunistic feedstock trades and temporary workarounds.
Schwedt’s heavy sweet imports are a stopgap. Wilhelmshaven’s crude slate is a patchwork. And OFAC’s hard line on asset transfers has ensured no one can take up the slack.
