- The project is valued at PLN 13.5bn and will be completed by early 2025.
- The Olefins III Complex will reduce CO2 emissions by 30% per tonne of product.
- The expansion will increase production capacity from 640,000 to 1,040,000 tonnes.
- Hyundai Engineering and Técnicas Reunidas are the preferred contractors.
Project Overview
PKN ORLEN is expanding the Olefins Complex at the Płock Production Plant, marking the largest petrochemical investment in Europe in the last 20 years. The project, valued at PLN 13.5bn, aims to enhance energy efficiency and reduce CO2 emissions by 30% per tonne of product. Completion is scheduled for the first quarter of 2024, with production starting in early 2025.
Production and Capacity
The Olefins III Complex will cover nearly 100 hectares and increase the current Steam Cracker's capacity from 640,000 to 1,040,000 tonnes, a 60% boost. The expansion will also add about PLN 1bn to the company's annual EBITDA and increase PKN ORLEN's share in the European petrochemical market from 5% to 6.4%.
Environmental and Economic Impact
The project aligns with the ORLEN2030 strategy, targeting carbon neutrality by 2050. It aims to reduce carbon emissions from existing refinery and petrochemical assets by 20% and cut emissions per megawatt-hour of electricity by 33% by 2030. The expansion will generate PLN 160m in taxes and create approximately 380 new jobs.
Contractors and Partnerships
The Supervisory Board has approved the project, which will be executed under the EPCC formula with Hyundai Engineering and Técnicas Reunidas as preferred contractors. The LOTOS Group will supply petroleum products for the production of petrochemicals, and a special purpose vehicle, ORLEN Olefiny, has been established to implement the project.
Future Developments
The project includes the construction of a new Steam Cracker with a capacity of 740,000 tonnes and five additional production units, including a large ethylene oxide and glycol plant. This expansion will significantly strengthen the Płock Production Plant's petrochemical segment and meet the growing demand for high-margin petrochemicals.
