ORLEN Acquires Full Ownership of Butadiene Unit from Synthos
- The transaction is valued at approximately PLN 692 million.
- The butadiene unit will process C4 output and deliver raffinate for downstream processes.
- Agreements shorten Butadien Kralupy JV and related contracts from 2049 to 2038.
- New Chemicals initiative includes monomer production and expanded sales capacity.
Transaction Overview
ORLEN has acquired full ownership of S54, the company responsible for developing a new butadiene extraction unit, from Synthos. The transaction is valued at approximately PLN 692 million and includes a series of agreements to solidify the relationship between the two companies.
Integration and Operations
The butadiene unit will be integrated into ORLEN’s Production Plant in Płock, processing the entire C4 output and delivering raffinate for downstream petrochemical processes. This integration aims to enhance ORLEN's petrochemical value chain.
Revised Agreements
The agreements between ORLEN and Synthos also involve cooperation in the Czech Republic, shortening the duration of the Butadien Kralupy JV and related contracts from 2049 to 2038. Additionally, they secure two more years of ethylene and benzene offtake in the Czech market.
Strategic Direction
ORLEN's Management Board has shifted focus from the Olefins III project to the New Chemicals initiative, which includes constructing a monomer production facility and expanding sales capacity in ethylene oxide, glycols, styrene, and the C4 fraction. These agreements provide ORLEN with greater operational flexibility and a stable framework for continued business cooperation with Synthos.
Source: ORLEN