Shell to offload stake in German refinery to Alcmene

Shell Deutschland (Shell) has entered an agreement to divest a non-operated stake of 37.5% in the PCK Schwedt Refinery in Germany to Alcmene, an Austria-based unit of energy firm Liwathon Group.

The PCK refinery, located 120km Northeast of Berlin, currently has a processing capacity of around 220,000 barrels of crude oil per day.

The sale is part of the oil firm’s plans to reduce its global refinery footprint to core integrated sites with a low carbon footprint.

Shell manufacturing executive vice-president Robin Mooldijk said: “This is yet another milestone in our journey towards a reduced refining portfolio.

“This sale supports the shift of Shell’s refining portfolio, which includes the development of the high-value Energy & Chemicals Park Rheinland.”

The deal is planned to be closed in the second half of this year, subject to partner rights and regulatory approval. The financial terms of the deal were undisclosed.

Shell said in a statement: “Germany remains a key country to realise Shell’s powering progress strategy goal of achieving net-zero emissions, purposefully and profitably. This sale does not impact any of Shell’s other interests or activities in the country.”

Other partners in PCK include Rosneft with a 54.17% stake and Eni with an 8.33% interest.

These shareholders will have pre-emption rights over Shell’s stake, which can be exercised within three months from the signing of the sale and purchase agreement.

In May 2021, Shell agreed to divest its 90,000bpd refinery in Mobile, Alabama, US, to speciality refiner Vertex Energy.

The assets considered for sale include Shell’s 100%-owned Mobile refinery and associated co-located logistics infrastructure, including product racks, an associated dock, and the Blakeley Island Terminal.