Kazakhstan received confirmation from the Russian Federation for the transit of 300,000 tons of oil to Germany in Q1 23

(Added details throughout the text)

MOSCOW, Jan 13 (Reuters) –

For the first time in history, Kazakhstan will be able to start supplying oil to Germany via the Druzhba pipeline in the first quarter of 2023, which will ease the situation of the German plants Leuna and PCK Schwedt, which completely refused to purchase Russian oil from January 1.

The Kazakh operator of the pipeline system, Kaztransoil, has received confirmation from the Russian Ministry of Energy for the transit of 300,000 tons of export Kazakh oil to Germany in the first quarter of 2023, the press service of Kaztransoil reported.

“..Confirmation has been received from the Ministry of Energy of the Russian Federation for the transportation in the first quarter of 2023 of 300,000 tons of Kazakh oil through the Transneft oil trunk pipeline system in the direction of the oil delivery point Adamova Zastava for further delivery to Germany,” Kaztransoil said in a press release.

The confirmation was received in the form of an extract from the schedule for the transit of oil from the CIS member states through the territory of the Russian Federation through the system of trunk oil pipelines within the framework of the intergovernmental agreement between Russia and Kazakhstan, the document states.

The Kazakh Energy Ministry, Kazmunaigas and the pipeline monopoly Transneft did not respond to Reuters’ written requests for comment.

Earlier, the head of the Ministry of Energy of Kazakhstan, Bolat Akchulakov, announced that he had received confirmation from the Russian side for the export of 20,000 tons of oil to Germany in January of this year.

Reuters failed to identify the buyers of Kazakhstan’s oil on the German side, while market participants believe that the raw material is expected to be delivered to the PCK Schwedt refinery. It is also unknown which of Kazakhstan’s oil producers will supply raw materials to Germany.

FRIENDSHIP END

Built in Soviet times, the Druzhba pipeline was previously the main route for pumping Russian raw materials to the Polish refineries in Plock and Gdansk, as well as to the Leuna and PCK Schwedt refineries in Germany. Part of the Druzhba system on the territory of Poland and Germany can be used to supply raw materials to these plants from the port of Gdansk.

The EU countries refused to purchase Russian oil from the sea from December 5, and also introduced marginal prices for raw materials from the Russian Federation, but the Druzhba oil pipeline is still not subject to sanctions, while Germany voluntarily refused pipeline deliveries of Urals since the new year.

From 2023, the main route for oil supplies to the Leuna and PCK Schwedt refineries will be the Polish port of Gdansk, which will receive oil shipments of non-Russian origin from the sea.

In December, Poland took over

obligation

from January to supply oil to the PCK Schwedt plant via Gdansk in volumes sufficient to ensure the plant’s capacity by 70%.

In December, the German Ministry of Economics reported that oil from Kazakhstan would help replenish supplies for the PCK Schwedt refinery in eastern Germany, but the expected volume of Kazakhstani imports of raw materials this year will not yet fully compensate for the shortfall in supplies from Russia, traders say.

Kazakh oil deliveries to Germany via the Druzhba pipeline may reach 1.2 million tons in 2023, while imports of Urals pipeline consignments to Germany in the past amounted to more than a million tons per month.

Kazakh oil, when exported through the territory of the Russian Federation, is not subject to anti-Russian sanctions, but since June 2022 it has changed its name from Urals to KEBCO Blend to confirm the country of origin.

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