- The EFRA Project costs approximately PLN 2.3bn.
- Completion is scheduled for 2Q2018.
- The project will produce 900 thousand tonnes of high-margin fuels annually.
- A coke sale agreement was signed with Oxbow Energy Solutions B.V.
Project Overview
The EFRA Project aims to increase the yield of valuable products from each oil barrel processed at the Gdańsk refinery. By utilizing modern technologies, heavy residues from the refining process will be used more effectively.
Modernization and Output
EFRA is a continuation of the refinery's modernization efforts, supplementing the crude oil processing configuration created under the 10+ Programme. New facilities will produce 900 thousand tonnes of new oil products annually, boosting refining margins by several dozen percent.
Financing Details
In June 2015, the LOTOS Group secured financing for EFRA. Funds were raised through a share issue on the Warsaw Stock Exchange, loans, credit facilities, and internally generated funds. Eight financial institutions, including six banks and two insurance companies, provided partial financing.
Cost and Production
The total cost of the EFRA Project is estimated at approximately PLN 2.3bn. Upon completion, the complex will increase distillate yields and boost refining margins by about USD 2/bbl. The project is expected to be completed by 2Q2018.
Market for New Products
To ensure commercial success, LOTOS Asfalt signed a coke sale agreement with Oxbow Energy Solutions B.V. in 2015. This agreement guarantees the sale of coke produced by the Delayed Coking Unit, a key component of the EFRA Project.
Production Flexibility
The EFRA Project aims to optimize the use of heavy residue, shifting the product mix towards more engine fuels. This will enhance the refinery's flexibility and competitive position, even with fluctuations in market prices of crude oil and oil products.
