- The EFRA Project at Gdansk Refinery costs PLN 2.3bn and aims to boost refining margins by USD 2/bbl.
- Completion is scheduled for 2018, with key units expected by Q2 2016.
- Main units include Delayed Coking Unit, Hydrogen Generation Unit, and Hydrowax Vacuum Distillation Unit.
- Financing includes PLN 530m from the State Treasury and USD 432m from financial institutions.
Project Overview
The EFRA Project at the Gdansk Refinery involves constructing a deep oil conversion complex to increase distillate yields and boost refining margins by approximately USD 2/bbl. The project, costing around PLN 2.3bn, is expected to add up to 900,000 tonnes to the refinery’s annual fuel output. Completion is scheduled for 2018, with key units anticipated by Q2 2016.
Construction and Key Units
The first stage includes earthworks and foundation preparations. Main units to be built are the Delayed Coking Unit (DCU), Hydrogen Generation Unit (HGU), Coking Naphtha Hydrotreating Unit (CNHT), LPG Treatment Unit (LPGTU), Coke Logistics and Storage Facility (CS-LF), and Hydrowax Vacuum Distillation Unit (HVDU). These units will enable the refinery to process crude oil into high-margin products, fully utilizing heavy residue.
Financing
Grupa LOTOS secured financing for the project by June 2015. The State Treasury contributed PLN 530m, and additional funds were raised through a share issue and loans from financial institutions, including a USD 432m term loan and a PLN 300m working capital facility. The project finance model extends until December 2024.
Contracts and Partnerships
LOTOS Asfalt signed a PLN 1.26bn contract with Italy’s KT - Kinetics Technology S.p.A. for engineering, procurement, construction, and commissioning of key units. Additionally, an agreement with Germany’s Linde AG will see the construction of an Oxygen Generation Unit to enhance desulfurization efficiency.
Sales Agreements
To ensure commercial success, LOTOS Asfalt signed a coke sale agreement with Oxbow Energy Solutions B.V. of the Netherlands, securing a market for the coke produced by the Delayed Coking Unit.
