21.12.2009

ORLEN Group settles tender for supply of esters in 2010

The supplies of methyl esters to PKN ORLEN Capital Group in the period from January to September 2010 will be delivered by 13 contractors. The bio-components will be destined for the Polish, Lithuanian and Czech markets. Overall, the ORLEN Group contracted over 400,000 tons of esters.

Over 150 companies from the European market were invited to tender. Ultimately, the cooperation offer was submitted by over 20 potential suppliers.

In accordance with the rules of selection of bio-component suppliers, in the first stage bidders were submitting their price bids in an internet auction (on-line negotiations). In the final stage, the suppliers were selected through direct negotiations.

The decisive factors in the ultimate selection of contractors were: the quality of the product offered, fulfillment of formal and statutory regulations stipulated in national legislation as well as commercial terms and conditions.

- Term contracts and the structure of suppliers to respective companies of the Group will guarantee the liquidity and security of supplies, which is particularly important given the ever-growing level of indicative targets. It should be underlined that over 41% of ester volumes for the Polish market will be supplied by domestic contractors. Pursuing the policy of maintaining the highest standards of quality in relation to fuels placed on the Polish market, we have signed contracts for rapeseed methyl esters (RME) only, which in comparison to esters manufactured on the basis of other plant oils have the best physicochemical parameters - Jacek Krawiec, CEO of PKN ORLEN said.

The following suppliers were selected in the process:

To PKN ORLEN S.A.:
Aleks Fruit Sp. z o.o., ADM Hamburg AG, Rapseveredelung Vorpommern GmbH&Co. KG, Agropodnik a.s. Jihlava, Biopaliwa S.A., Bioagra Oil S.A., Biodiesel Paldiski AS and Rafineria Trzebinia S.A.

To ORLEN Lietuva:
SIA BioVenta, Biodiesel Paldiski AS and StatoilHydro ASA

 To UNIPETROL RPA, s.r.o.:
Oleochemical a.s; Olefin a.s. and Agropodnik a.s. Jihlava

In 2010 the National Indicative Target ("NIT") for Poland is set at 5.75 %. Reaching this level will be a big challenge to manufacturers and fuels importers.