Poland

Fuels
In 2007, the Polish refinery plants of ORLEN Group processed in total over 13.9 million tonnes of crude oil, that is approximately 1.2 percent more than in the previous year. The highest share in the generated production volume was attributable to the PKN ORLEN refinery plant in Płock, which itself processed over 13.6 million tonnes of crude oil, producing 8.6 million tonnes of fuels.

 

 

 

 

 

 

Production volume of selected refinery products in PKN ORLEN in 2006-2007 ('000 tonnes)

	2006	2007	Dynamics
Crude oil processing	13 612	13 646	0,20%
Total engine petrol	2 723	2 610	-4,10%
Total diesel oil	3 995	4 568	14,40%
Ekoterm, light heating oil	1 207	840	-30,40%
Aviation fuel	402	355	-11,80%
Liquefied gas	216	190	-12,30%
Total fuels	8 543	8 563	0,20%
Fuel output (%)	62,79	62,75	-0,04 pp
Output of white products (%)	78,12	77,94	-0,18 pp
Index of refinery exploitation (%)	100,8	101,1	0,3 pp

*Processing and production volumes of Rafineria Jedlicze and Rafineria Trzebinia are presented in the ORLEN fact Book publication.

Investments

In January 2007, the Management Board of PKN ORLEN SA decided on the construction of the Claus II installation, through buying its license and base project for the purpose of utilisation of the hydrogen sulphide gases produced during crude oil refinery process.

In October 2007, the Company entered into an agreement with UOP for the base project of modernisation and intensification works at the HF Alkylation installation with an annual production capacity of 280 thousand tonnes. The installation produces high-octane components of engine fuels, i.e. alkyls.

In November 2007 the Company commenced the construction of the Hydrogen II Production Plant, necessary for satisfying the hydrogen demands of the new HON VII and Paraxylene plant as well as currently operating, to-be revamped facilities in Płock. The capacity of the new installation, to be completed by mid 2009, will be 5 tonnes of hydrogen per hour based on natural gas processing. Technip Benelux is the licensor and contractor of the base project and the contract.

In mid November 2007, PKN ORLEN, together with Solomon Associates, commenced the implementation of a project for improving the effectiveness of the refinery and petrochemical complex in Płock, called NCM3 (Net Cash Margin Measurement, Management, Maximisation). The NCM3 priority task is the maximisation of the production area margin at the refinery plant in Płock. The project is to be completed in 2010.

In December 2007, the Company carried out the mechanical acceptance of the diesel oil fraction stabilisation centre in Hydro-desulphurisation of the Heavy Vacuum Residue installation (started 2 months later). The task of the centre was denitrogenisation, desulphurisation and removal of resins from diesel oil fractions. The centre provides the possibility to use fractions for the production of the light heating oil Ekoterm and, optionally, of  ready diesel oil. The projected capacity of the centre is 55 tonnes of diesel oil per hour, i.e. 460 thousand tonnes per year with an annual burden of 8,000 hours.

In relation to the permanent shutdown of the Solvent Production Plant in Płock in June 2007, Rafineria Jedlicze completed construction and start-up of a solvent production installation, thanks to which the refinery plant is able to manage light fractions from its own crude oil processing in a more efficient way, while at the same time serving the solvent market within ORLEN Group.

Bitumen
The total bitumen production by ORLEN Asfalt Sp. z o.o. in 2007 was almost 700 thousand tonnes, i.e. over 2.2 percent higher than in 2006. The domestic production of pitches and specific bitumen products reached nearly 8 thousand tonnes, that is 22.1 percent lower than the production in 2006. The highest increase, almost as much as 50 percent, was reported in the production of ORBITON modified bitumen, mainly due to the start-up of a new installation for modified bitumen production in Płock in August 2006. Industrial bitumen production was lower than in 2006, caused by high raw material costs and the import of cheap products from Hungary. The decrease in the production of pitches and specific bitumen products compared to 2006, was mainly affected by lower market demand. The Company’s share in the domestic bitumen sales market remained in 2007 at the level of year 2006 and reached 44%

Investments

In 2007, ORLEN Asfalt purchased and started up a new bitumen filling system for road tankers equipped with devices for measuring the quantity of the bitumen input. The investment allowed the Company to increase its control over the filling of road tankers and improve the safety and operational capacity of the installations in Płock and Trzebinia.

ORLEN Asfalt also completed construction of a V-3000 m3 container for storing finished products. Owing to the implementation of the investment, the Company increased its fi nished products storage capacity necessary, in particular, during periods of lower demand for products.

Bitumen production in Poland in 2006–2007 (’000 tonnes)

	2006	2007	Dynamics
Ordinary road bitumen	1 443	1 380	-4,40%
Modified bitumen	174	230	32,10%
Industrial bitumen	90	90	0,00%
Total	1 707	1 930	13,10%
Import	154	140	-9,10%
Export	250	438	75,20%

Volume of bitumen production by ORLEN Asfalt in 2006–2007 (tonnes)

	2006	2007	Dynamics
Ordinary road bitumen	613 812	599 343	-2,30%
ORBITON modified bitumen	51 599	77 204	49,60%
Industrial bitumen	47 688	23 184	-51,40%
Pitches and specific bitumen products	10 264	7 996	-22,10%
Total	723 363	707 727	-2,20%

Structure of bitumen sales in 2007 by ORLEN Asfalt Sp. z o.o. (tonnes)

	2007
Road bitumen	672 180
Industrial bitumen	26 297
Pitches and specific bitumen products	8 031
Total bitumen	706 508