Glossary

B

BARREL

Unit of volume used for measuring liquids, mainly in crude oil trading and in the oil industry. 1 barrel of oil (1 bbl) = 42 US gallons = 158.96832 litres.

BIOETHANOL

Ethyl alcohol made from biomass or biodegradable waste.

BOE

Barrel of oil equivalent.

C

CATALYST

A substance that accelerates (initiates) an expected chemical reaction.

CLS

Canadian Light Sweet oil prices at Edmonton, Province of Alberta.

CNG

Compressed natural gas.

CODO / COCO

Company Owned Dealer Operated service station / Company Owned Company Operated service station.

CO₂e/MJ

Unit of measure of GHG emissions.

CRACKING

Thermal or catalytic conversion of heavy or complex hydrocarbons into light products and coke, resulting in increased yields of light petroleum products.

D

DES

The Delivery-Ex-Ship formula: the LNG seller ensures delivery of the vessel carrying LNG to the port chosen by the buyer.

DISTILLATION

A physical separation technique for liquid mixtures that relies on the differing boiling points of the individual components within the mixture being separated.

DOFO / DODO

Dealer Owned Franchisee Operated service station / Dealer Owned Dealer Operated service station.

E

EEX

European Energy Exchange AG.

EIA

Energy Information Administration (US).

EU ETS

The EU Emissions Trading Scheme.

F

FOB

The Free-on-Board formula: the LNG seller ensures delivery of LNG to a tanker at the port of loading.

FSRU

Floating Storage Regasification Unit, i.e. a type of vessel capable of LNG unloading, process storage and regasification, as well as providing additional services.

G

GHG

Greenhouse gases, i.e. atmospheric gases that trap solar energy within the Earth’s atmosphere, thereby contributing to the greenhouse effect.

H

HENRY HUB

A pricing hub in the United States.

HIGH-EFFICIENCY COGENERATION

The simultaneous production of electricity or mechanical energy and useful heat, achieving at least 10% savings in primary energy use compared to the separate generation of electricity and heat or, in the case of cogeneration units with an installed electrical capacity of less than 1 MW, compared to the separate generation of electricity and heat.

HVO

Hydrotreated vegetable oil unit.

HYDROCARBONS

Organic compounds composed of carbon and hydrogen. Crude oil and natural gas are mixtures of hydrocarbons.

HYDROCRACKING

Catalytic cracking of hydrocarbons in the presence of hydrogen. The process improves yields of light petroleum products.

HYDRODESULFURISATION

Process of removing sulfur compounds by adding hydrogen to petroleum fractions at elevated temperature and pressure in catalytic beds.

I

ICE

Ang. Intercontinental Exchange - giełda specjalizująca się w handlu energią i surowcami.

K

KM

(Linear) kilometre.

KPMG

Cavern gas storage facility.

L

LNG

Liquefied natural gas.

M

MED STRIP

Brent oil prices.

MMR

Micro Modular Reactor, a nuclear energy system.

MODEL OLEFIN MARGIN

Margin calculated based on the following formula: revenue (100% products = 0.85ethylene54% + 0.92propylene 28%+ 0.84glycols9% + 0.81 butadiene6% + 0.8* ethylene oxide* 3%) minus costs (100% feedstock = 100% naphtha). Product prices based on market quotations.

MODEL PETROCHEMICAL MARGIN

Margin calculated based on the following formula: revenue from sales of products (98% products = 44% HDPE + 7% LDPE + 35% PP Homo + 12% PP Copo) minus costs (100% feedstock = 75% naphtha + 25% LS VGO). Contract market quotations.

MODEL REFINING MARGIN

Margin calculated based on the following formula (until 31 July 2022): revenue from sales of products (93.5% products = 36% gasoline + 43% diesel oil + 14.5% heavy fuel oil) minus costs (100% feedstock: crude oil and other raw materials). Total feedstock is calculated based on Brent price. Spot market quotations. Margin calculated based on the following formula (from 1 August 2022): revenue (93.6% products = 33% gasoline + 48% diesel oil + 13% heavy fuel oil) minus costs (100% feedstock: 98% Brent crude + 2% natural gas). Spot market quotations.

MONOMERS

Molecules, either of the same or various chemical compounds, that have a relatively low molecular weight. Through polymerisation reactions, monomers form polymers. Examples of monomers include ethylene and propylene.

MWe

Megawatt electric.

MWt

Megawatt thermal.

N

NBP

National Balancing Point – a pricing hub in the UK.

NCG

NetConnect Germany GmbH & Co. KG – a pricing hub in Germany.

NCI

Net Carbon Intensity – an indicator measuring net emissions from energy products sold in gCO2e/MJ for Scope 1, 2 and 3 emissions.

NCR

National Reduction Target – an indicator defining the required minimum greenhouse gas emission reduction, calculated per unit of energy, across the lifecycle of various fuels used in transport (liquid fuels, liquid biofuels, liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), engine oil for inland waterway vessels, or hydrogen), whether disposed of by way of any legal or actual transaction or consumed by the entity for its own needs, and electricity used in motor vehicles, whether sold to end users or used by the entity for its own needs.

NET WELLS

Number of wells adjusted for other licence partners’ interests.

NGL

Natural gas liquids, i.e. components of natural gas consisting of molecules that are heavier than methane, such as ethane, propane, butane, isobutane, etc.

NIT

National Indicative Target – an indicator defining the required minimum share of biocomponents in the total volume of liquid fuels and biofuels, whether sold on the market or used for the entity’s own needs, in a given calendar year.

Nm³

Normal cubic meter of gas.

O

OECD

Organisation for Economic Cooperation and Development.

OPEC

Organisation of the Petroleum Exporting Countries.

OTC

Over-the-counter market, i.e. an unregulated platform where transactions are executed directly between market participants, without commission fees. It operates without a supervisory authority. Trading takes place on a 24 hour basis, with the exception of weekends.

P

POLPX

Polish Power Exchange – Towarowa Giełda Energii S.A.

POLYMERS

Chemical substances of very high molecular weight, composed of many repeat units called mers. Examples of polymers are polyethylene and polypropylene.

PRICE DIFFERENTIAL

Calculated on the basis of the actual shares of the crude oil types processed. Spot market quotations.

S

SAFETY CULTURE INDICATOR

The Safety Culture Indicator is calculated as the sum of: the product of the percentage representing the company’s achievement of the target for the combined TRR (covering both the company and its contractors) and 0.7 (injury rate weight in the Safety Culture Indicator); and the product of the percentage representing the company’s achievement of the target for the Risk Notification and Handling Indicator and 0.3 (risk notification weight in the Safety Culture Indicator).

SMR

Small Modular Reactor – a technology for small, modular nuclear reactors with a capacity of up to 300 MW.

SSLNG

Small-scale liquefied natural gas.

T

THE

Trading Hub Europe – a pricing hub in Germany.

TPA

Third Party Access (TPA) principle, i.e. a principle that ensures access for third parties to a local energy or gas supplier’s infrastructure for the purpose of delivering electricity or gas to the customer, even if those commodities are purchased from a different supplier.

TRR

Total Recordable Rate – an internationally recognised metric of a company’s rate of workplace accidents calculated as follows: (number of workplace accidents in a period of time / number of hours worked in the same period) x 1,000,000.

TTF

Title Transfer Facility – a pricing hub in the Netherlands.

T1 PSER

Tier 1 Process Safety Events Rate – number of events of greater consequence related to substance release into the atmosphere x 1,000,000/number of man-hours.

T2 PSER

Number of events of lesser consequence related to substance release into the atmosphere x 1,000,000/ number of man-hours.

U

UGSF

Underground gas storage facility.

UPSTREAM VALUE CHAIN

Hydrocarbon exploration and production activities.

URAL RDAM (URAL CIF ROTTERDAM)

Urals oil prices in Rotterdam.

URE

Energy Regulatory Office – energy market regulator in Poland.

V

VISBREAKING

Thermal cracking of petroleum tar, i.e. a heavy oil byproduct from the vacuum distillation of crude oil. TRR (covering both the company and its contractors) and 0.7 (injury rate weight in the Safety Culture Indicator); and the product of the percentage representing the company’s achievement of the target for the Risk Notification and Handling Indicator and 0.3 (risk notification weight in the Safety Culture Indicator).

W

WTI

West Texas Intermediate oil prices.

A glossary of defined terms and acronyms can also be found on the Company’s website: http://www.orlen.pl