German Government Launches Strategy Dialog to Protect Domestic Refineries

The German government has initiated a formal dialogue with the mineral oil industry to formulate a dedicated strategy aimed at securing domestic refineries. The Federal Ministry for Economic Affairs started the process to gather input from federal states, labor unions such as IGBCE, and representatives from affected supply chains. Ultimately, the discussions will culminate in a strategy paper presented to the cabinet, though a specific timeline for its completion has not yet been established.

The initiative currently lacks a concrete catalog of measures, mandatory obligations, or a formal legislative procedure, leaving the exact regulations open for discussion. To support the process, the ministry plans to launch a cross-departmental study to determine the requirements for a resilient energy system and how to integrate such resilience into administrative structures and planning tools.

Germany currently houses eleven refinery sites with a combined crude oil processing capacity of roughly 92 million tons per year. The Ministry for Economic Affairs classifies the preservation of these facilities as a strategic industrial policy priority, emphasizing their vital role in supplying fuels, industrial feedstock, and overall national security. Additional pressures driving the initiative include structural challenges within the European refining sector, international conflicts, and threats to energy infrastructure.

Federal Minister for Economic Affairs Katherina Reiche stressed the importance of keeping German refineries competitive to ensure the nation maintains control over its own energy supply. According to industry association en2x, roughly 80 percent of refinery output is dedicated to energy uses like fuels and heating oil, while the remaining 20 percent supplies the chemical and pharmaceutical industries. Refineries provide over 70 percent of the basic materials required for organic chemistry, often integrating closely with major industrial and chemical parks across the country, including sites in Leuna, Burghausen, Gelsenkirchen, and Cologne.

The ministry warns that the loss of domestic refining capacity could threaten the existence of numerous chemical companies and force them to relocate. Officials argue that relying entirely on imports creates new vulnerabilities, pointing to previous disruptions in the Middle East that cut off a significant portion of Europe's diesel and jet fuel supplies. Critics note that while import volumes are substantial—with Germany importing millions of tons of mineral oil products annually—the specialized product streams delivered directly via pipeline to neighboring chemical plants cannot be easily replaced by standard market imports.

Meanwhile, regional developments highlight ongoing industrial and security activities surrounding major hubs. In Leuna and the wider region, authorities recently reported localized incidents, including an attempted theft at a commercial center where security personnel were targeted with pepper spray, alongside infrastructural developments such as the launch of a new bio-refinery project noted in regional reports.

To facilitate the broader industrial transition away from fossil fuels toward sustainable raw materials, the ministry estimates that investments in the billions will be required. While industry associations emphasize that long-term planning security is essential for companies to commit capital amid high energy costs and European emissions trading burdens, the federal government has yet to outline specific funding allocations or detailed timelines for the upcoming strategy.