Letter of Intent between PKN ORLEN and PERN
PKN ORLEN and PERN (Crude Oil Pipeline Operator in Poland) have signed the Letter of Intent for construction of the product pipeline between Boronów and Trzebinia. The 100 kilometer long pipeline will be an important part of fuel logistics aimed at significant cost optimization. The Agreement between the Parties is to be signed in mid 2009.
The Boronów – Trzebinia pipeline will be a continuation of the existing Płock – Koluszki – Boronów facility. The investment will be undertaken by PERN whereas PKN ORLEN declares a long-term yield of the pipe at approximately 1 million tons of fuel per annum. The prolonged infrastructure will improve the efficiency of fuel supplies to Krakow and Katowice areas - Poland’s largest fuel consumption centers.
Both PKN ORLEN and PERN will shortly sit down over the feasibility study to specify technical and financial details of the project which should be presented by the end of July 2009.
The investment is in line with PERN’s strategy as the operator and the economically sound pipeline network.
Simultaneously to the project, PKN ORLEN is developing its own product pipeline between Ostrów Wielkopolski and Wrocław. The investment in 105 kilometers and an annual capacity of 1 million tons of fuel is scheduled to be finished by the end of 2009.
