Shell continues its refinery divestment strategy with the sale of its minority 37.5% stake in the 220,000 PCK Schwedt refinery in Brandenburg, Germany, to Alcmene, the Austrian subsidiary of Estonian oil terminal operator Liwathon.
The sale includes the hydrocarbon inventory, which will be valued at closing based on volumes and prevailing market prices. Based on current market prices, historic inventory volumes and normal operating conditions, the value is estimated at US$150–250 million. Alcmene will provide energy and commodities trading from its headquarters in Vienna, Austria.
PCK is independently managed. The other shareholders are Rosneft (54.17%) and Eni (8.33%). Shell does not operate the refinery so its employees will not be materially affected. The transaction is expected to close before the end of 2021, subject to partner rights and regulatory approval.
Shell says that Germany remains a key country towards its goal of achieving net-zero emissions, and that the sale does not affect any other activities in the country.
‘This is yet another milestone in our journey towards a reduced refining portfolio,’ says Robin Mooldijk, Shell’s EVP for manufacturing. ‘This sale supports the shift of Shell’s refining portfolio which includes the development of the high-value Energy & Chemicals Park Rheinland.’
In its 2020 Q3 results, Shell set out plans to reduce its refining portfolio to a smaller set of core sites integrated with chemicals and trading. It has already sold its Mobile Chemical LP Refinery in Alabama, US, to Vertex Energy, HollyFrontier bought the Puget Sound refinery in Washington, US, while Pemex unexpectedly bought out Shell’s share of the Deer Park refinery in Texas, US.
