Orlen still interested in Schwedt

Orlen’s new management remains interested in the Schwedt refinery, but the ball is in Germany’s court.

“The Schwedt refinery is an interesting facility from Orlen’s perspective, but it all depends on the German government. There are environmental issues that need to be resolved,” President of Orlen Ireneusz Fąfara told BiznesAlert.pl.

Orlen was considered as a company that could take over the shares of Russia’s Rosneft Deutschland, which has been under a trusteeship since Russia’s invasion of Ukraine for energy security reasons. However, despite Poland’s demands, Germany decided against derusfying the refinery and is in talks with Rosneft, which is to select a company that will buy its 54 percent stake in the facility, which is important for fuel security in western Poland. The current trusteeship is in effect until September 2024 and can be extended.

President Fąfara’s declaration confirms the continuation of Orlen’s policy on the Schwedt refinery. The Polish government offered Germany access to the oil port in Gdańsk in order to import non-Russian oil, but the German Climate Ministry decided to buy oil from Kazakhstan that is imported via the Russian oil pipe Friendship that goes across Poland. The German refinery is operating at 70 percent capacity. Whereas if Schwedt decided to cooperate with the Polish naftoport, the plan to build another line of the Pomerania Oil Pipeline could become profitable. Poland’s PERN wants to do that.

BiznesAlert.pl has also reported that Schwedt’s sulphur emissions are massive, but the refinery did receive a special permit for that, which also requires billions of investments to reduce the emissions.

Orlen’s press office replied to BiznesAlert.pl’s question about the company’s interest in Schwedt’s shares. “Orlen constantly monitors foreign markets in search of opportunities for acquisitions and partnerships and analyzes them for matching with existing assets, in the perspective of supporting the implementation of strategic goals. All decisions regarding possible investments or capital involvement are made in accordance with the corporate code and communicated, in accordance with the regulations defining the company’s information obligations,” Orlen told us.

Wojciech Jakóbik / Jedrzej Stachura