Druzhba Leaks Disrupt German Oil Flows

Germany said on Wednesday it was receiving less oil but still had adequte supplies, after Poland announced it had detected a leak in the Druzhba pipeline that delivers crude oil from Russia to Europe. Poland said the leak was probably caused by an accident. The leak in the main route carrying oil to Germany comes at a time when Europe is alarmed over its security of energy infrastructure after leaks were found on Nord Stream 1 and 2 pipelines, which the West and Russia both blamed sabotage.

“After removing most of the contaminants from the area near the crude oil pipeline that was damaged yesterday, PERN’s technical services have located the site of the leak,” Polish pipeline operator PERN said in a statement.

“The first findings and the method of pipeline deformation show that at the moment there are no signs of interference by third parties.”

PERN also said it was working to find out what caused the leak and to repair the pipeline.

Drone footage showed a black stain of oil from the underground pipeline spreading across farmland at the site of the leak, surrounded by fire engines and other emergency teams.

Meanwhile, Germany said its security of supply was currently guaranteed as the country’s Schwedt and Leuna refineries were continuing to receive oil via the Druzhba.

The Schwedt refinery, which supplies 90% of Berlin’s fuel, said deliveries were taking place but at reduced capacity.

Germany also said it was hoping to hear more from Poland about the cause of the leak and how it can be repaired.

Poland’s oil refiner PKN Orlen said supplies to its Plock refinery were not interrupted. Czech pipeline operator MERO also said it had not seen any change in flows.

The second line of the Druzhba pipeline was working as normal, PERN said.

The total capacity of the western section of both lines that carry oil from central Poland to Germany is 27 million tonnes of crude oil per year.

If Druzhba flows are interrupted, Germany’s Schwedt refinery will struggle the most as it has few alternatives to replace Russian crude.

The German government aims to eliminate imports of oil from Russia by the end of the year under European Union sanctions. But in the first seven months of the year, Russia was still its top supplier, accounting for just over 30% of oil imports.

While Germany tries to wean off Russian oil imports, Druzhba could still be important in supplying Schwedt via the Gdansk Port in Poland.

The German government has been in talks to secure oil from Kazakhstan to supply Schwedt, but that oil would have to flow to Germany via the Druzhba pipeline too.

Berlin has rejected an offer from Putin to supply gas to Europe via Nord Stream 2 this winter. The new pipeline was completed last year but Germany refused to allow it to be put into operation. If Russia wanted to send gas, it could do so via Nord Stream 1, Germany said.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

EU to Make Green Hydrogen Partnership with Namibia

The European Union is looking for a deal with Namibia to support the country’s efforts to develop green hydrogen and boost its own imports. The EU has been scrambling to reduce its dependence on Russian energy. 

Taiwan Wants Progress on EU Investment Agreement

Taiwan wants progress to be accelerated on a long-stalled investment agreement with the European Union, Taiwanese President Tsai said. The EU has included Taiwan in its potential bilateral investment partners in 2015, but not talks between the two sides have been held since then on the issue. The EU is Taiwan’s biggest source of foreign investment, but its member states do not have formal diplomatic relations with the island due to China’s objections. Beijing views the island as part of its own territory. 

South Korea’s LG Chem to Build $3 Billion Cathode Plant in the U.S.

South Korean chemicals company LG Chem announced its plans to invest $3 billion to build a cathode plant in the U.S. state of Tennessee, as the company looks to utilize U.S. Inflation Reduction Act’s (IRA) tax credit scheme and meet rising demand for electric vehicle (EV) components in North America. The announcement marks one of the first major EV-related investment by a South Korean firm in the United States since the IRA was signed by Biden into law in August. 

Stay informed

error: This content is protected !!