Czech Oil Pipeline Operator MERO Nears Acquisition of Shell Deutschland's Stake in MiRO Refinery
02.08.2024 By Tank Terminals - NEWS

February 08, 2024 [BNN]- MERO, the Czech oil pipeline operator, is reportedly close to acquiring a 32.5% stake in the MiRO refinery, currently owned by Shell Deutschland. The deal, expected to be approved by the Czech government, aligns with the country’s efforts to enhance energy security, particularly following the 2022 Russian invasion of Ukraine.

 

In a move that underscores a strategic shift in energy security, the Czech oil pipeline operator, MERO, is believed to be in advanced negotiations to increase its portfolio with a significant acquisition. The target is a 32.5% stake in the Mineraloelraffinerie Oberrhein (MiRO) refinery in Karlsruhe, a stake currently held by Shell Deutschland. This information surfaces courtesy of the daily Hospodarske Noviny, although the report did not cite any sources.

 

Government Approval Pending

The potential acquisition is reportedly on the threshold of gaining approval from the Czech government. The timelines suggest a decision will likely materialize in the coming weeks. However, when approached for comments, both MERO and Shell Germany chose to maintain a guarded stance.

A spokesperson for Shell Germany acknowledged the company’s ongoing practice of evaluating portfolio opportunities but refrained from providing specifics due to commercial sensitivities. Similarly, a MERO spokesperson echoed this sentiment, stating the company’s ongoing commitment to enhancing energy security and evaluating opportunities to further this objective. However, they too declined to comment on the ongoing negotiations or reveal any potential plans.

 

Implications for Energy Security

The MiRO refinery, a key player in the energy landscape, boasts a connection to the Transalpine Pipeline (TAL) from Italy, where MERO holds a stake. This connection is expected to gain further significance with the anticipated capacity expansion sponsored by MERO. Coupled with the expected shutdown of the Druzhba pipeline from Russia, the TAL pipeline is set to become the primary source of crude oil for the Czech Republic.

The MiRO refinery carries substantial weight in the industry with its processing capacity of 15.8 million metric tons per year. This acquisition, if finalised, would likely play a significant part in shaping the Czech Republic’s energy future.

 

A Strategic Move

This potential acquisition aligns with the efforts of the Czech government to bolster national energy security, particularly in light of the geopolitical tensions that have escalated since Russia’s invasion of Ukraine in 2022. The government has been proactive in securing gas storage and transit networks and has even taken control of a network of petrol stations via a state-owned company. The MERO acquisition represents another step in this strategic direction.

However, the Czech industry and finance ministries, who would likely play a pivotal role in this acquisition, have not yet provided any comments on the matter. Hence, for now, the anticipation surrounding the final stages of this negotiation continues to mount.

 

Free Trial: Access 13,300 Tank Terminal and Production Facilities

13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

UAE Invests Billions in AI to Diversify Economy Beyond Oil
11.13.2024 - NEWS
November 13, 2024 [Oil Price]- The United Arab Emirates’ state-owned energy giant Abu Dhabi Nat... Read More
Gulf Energy Transition: Assessing Saudi and Emirati Goals
11.13.2024 - NEWS
November 13, 2024 [The Washington Institute]- On October 29, during Saudi Arabia’s annual Futur... Read More
How will The Energy Sector Fare Under Donald Trump?
11.13.2024 - NEWS
November 13, 2024 [Investing Daily]- The energy sector experienced a notable boost following Dona... Read More
PNOC, Pertamina Partner on LNG Infrastructure, Supply Chain
11.13.2024 - NEWS
November 13, 2024 [Manila Bulletin]- State-run Philippine National Oil Company (PNOC) has signed ... Read More