After Moscow suspended the delivery of Kazakh crude to PCK's 204,000 b/d Schwedt refinery in eastern Germany through the northern leg of the Druzhba pipeline in April, Estonia's Liwathon sees an opportunity to offer an alternative route. Its chief executive Merika Nimmo spoke to Argus, and editied highlights follow.
As Kazakh crude supplies to Schwedt come under pressure, how is Liwathon positioning itself to offer alternative supply solutions to Europe?
Our Muuga Harbour terminal in Estonia combines deep-water access, significant storage, and integrated sea, rail and road connectivity, offering Kazakhstan a genuine multimodal gateway to European markets.
Cargoes can arrive by rail directly into the terminal, by vessel at the port for storage, blending and onward distribution across Europe. For PCK Schwedt specifically, our infrastructure can support alternative delivery and storage solutions into the European market, giving refiners and the Kazakh side meaningful optionality where pipeline routes are under strain.
The recent suspension of Kazakh crude transit to Germany via Druzhba illustrates the vulnerability of single-corridor reliance. Estonia offers a credible contingency route, capable of being activated when established channels face technical, operational or geopolitical disruption.
For traders, the commercial logic is reinforced by blending and optimisation capability at the terminal, which improves trade economics and supports consolidation of smaller producer volumes seeking European market access.
How willing are European buyers to lift this Kazakh product flow from Liwathon storage?
European buyers continue to prioritise supply security, route diversification and logistical flexibility, and are increasingly evaluating infrastructure that can deliver reliably through periods of disruption.
Independent terminals with strong maritime access, storage flexibility and efficient customs handling are attracting growing attention.
Commercial viability of Kazakh flows via the Baltic naturally depends on freight, insurance and product specifications, but improves materially where storage is used for blending and optimisation rather than pure transit. On that basis, there is clear interest from market participants in maintaining access to alternative import corridors and well-positioned European storage capacity.
The interruption to Kazakh crude flows to Germany is, apparently, only temporary. Moscow says the reason for the interruption is a technical fault. How is Liwathon positioning itself long-term should Kazakh crude flows resume?
Our strategy isn't built around any single disruption. The broader trend is diversification — and recent events only reinforce how quickly established corridors can be affected.
Liwathon's role is to remain a flexible, independent logistics hub capable of handling crude, refined products and petrochemicals across multiple flows. The strategic case for independent storage and multimodal infrastructure holds whether current interruptions prove temporary or not.
Liwathon has been trying to establish a foothold in the German refining space. How is the share acquisition in Schwedt refinery progressing?
Liwathon's focus is terminal infrastructure, storage, blending and logistics.
We do not comment on external investment discussions or third-party refinery transactions.
Where does Liwathon see other opportunities to break into the European refining industry?
Liwathon Group has consistently viewed energy security as critical to Europe's long-term resilience. We will continue to assess opportunities across the European infrastructure sector, refineries included, as and when they arise.
Where an asset aligns with our strategy and complements the existing portfolio, we will look at it on its merits.
How else does Liwathon see the health of its storage business? Are there any plans to expand capacity through acquisitions or construction projects?
When Liwathon entered the infrastructure market, the decision was clear: own best-in-class assets in each region we operate.
That discipline is what keeps us competitive over the long term, and recent years have reinforced the strategic value of independent storage and multimodal logistics to the European energy market, particularly during periods of disruption, volatility and shifting trade flows.
That conviction has translated into substantial investment. In the Bahamas, we have committed significant capital to bring our terminal back into operation. In Estonia, we have continued to invest in our Muuga infrastructure to expand local commercial activity and strengthen the asset's competitive position.
We remain open to acquisitions and further investment in our existing portfolio where the commercial logic is sound. The priority remains on strengthening the utilisation, flexibility and competitiveness of our existing infrastructure while maintaining a disciplined and commercially sustainable approach to future growth.
