Uchenna Izundu
International Editor
LONDON, Aug. 27 -- Over the last month Germany has suffered a one-third shortfall in oil supplies from Russia via the Druzhba oil pipeline network. The line delivers oil from Russia through Belarus en route to Europe.
Transneft Vice-Pres. Sergei Grigoryev told Interfax that OAO Lukoil and other smaller companies had allegedly cut deliveries and had not given a reason for doing so. He expects Lukoil to comment within the next few days.
The 220,000 b/d PCK refinery at Schwedt in eastern Germany has sought other sources to make up for the shortfall of supply. The company said it had been informed by suppliers that there would be supply fluctuations and talks are ongoing between the parties.
Nevertheless the refinery is running at full capacity and is using its resources as well as oil supplies from the North Sea.
One possible reason that Lukoil has cut crude shipments to Germany is because it wants to sell directly to the German markets instead of through the traders who it is currently in conflict with, according to media reports. Full supplies are expected to resume in September.
Earlier this week there was speculation that there were problems with the pipeline network, which was why supplies had fallen. This is the second time in the last 8 months that Germany has seen a shortfall (OGJ Online, Jan. 10, 2007).
Contact Uchenna Izundu at [email protected].
