October 21, 2021

Biology Reporter

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Mazeikiu: PKN Orlen will invest 641 million euros in the construction of an oil processing plant

Mazeikiu: PKN Orlen will invest 641 million euros in the construction of an oil processing plant

Construction will begin in 2021, and the investment will be completed by the end of 2024.

The construction of a deep oil processing facility is the largest investment project in Lithuania in the history of the Orlen Group.

– As it was announced, investment in deep oil processing in Lithuania is entering the implementation phase. Today we have reached an agreement in which PKN Orlen has announced its funding, and therefore we will significantly increase the competitiveness of the Mazeikiu Refinery, which is critical to energy security in our region. Orlin’s president, Daniel Obajtek, said that increased revenue from high-margin products would also translate positively into stabilizing fuel supplies not only in the Baltic states, but also in Poland.

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– At the same time, we are talking with the Lithuanian government about possible forms of support for this pledge – added Obajtek. He informed that the Lithuanian side intends to pay an additional 70 million euros for the construction of the deep processing facility in Mazeikiu.

The Lithuanian government feels obligated to participate in this investment. Those were long and arduous negotiations. The Lithuanian side will pay an additional 8.5 percent, about 70 million euros, to the investment capital. not everything. A negotiating team has been set up headed by the Lithuanian Minister of Energy. The Lithuanian side is considering rebuilding the road infrastructure so that certain items can be delivered to Mazeikiu, but we are also working on the use of EU structural funds. Obajtek said during a press conference in Możejki that the participation of the Lithuanian state in this investment is very high.

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The construction of an advanced crude oil processing unit at the Mazeikiu Refinery will allow to increase the yield of high-margin products by 12 percentage points. Percentage of current is less than 72 percent. to more than 84 percent

Thanks to the investment, the processing of crude oil will be limited, but the level of fuel production will not decrease, and it will be possible to further develop the company towards new products and expand the value chain. This, in turn, will reduce the company’s sensitivity to changes in the macroeconomic environment.

Thanks to the implementation of the crude oil deep processing project, the production of high-sulfur heavy fuel oils will be eliminated, which in the context of tightening environmental regulations on heavy fuels will improve the competitiveness of refineries. Earlier, PKN Orlen purchased a license and the basic design for this investment was made.

In July 2021, Orlen Lietuva, a company of the ORLEN Group, signed a letter of intent with the Ministry of Energy of Lithuania on the investment of oil-deep processing.

The Możejki Refinery is the largest in Lithuania, employing about 1.5 thousand people. employees. Another 4,500 people are employees of outside services and subcontractor companies.

Bicknorlin

  • in public
    809800

  • the above
    83.3,000

  • Accurate
    80,8800

  • Reference price
    807200

  • total volume
    889248

  • total trading volume
    73423 564,50

  • lower forks
    729,000

  • upper fork
    89.0600