PKN ORLEN launches invitation to esters tender

Within the next few days, invitations to tender will be sent to ester suppliers identified both in Poland and across Europe. Details of the tender procedure, together with a schedule and the required quality standards will be published on the ORLEN website, at www.orlen.pl, under the 'Tenders' (Przetargi) tab.

The decisive factors in selecting the supplier will be the quality of the product being offered, the security of the raw material supply, the fulfilment of formal and statutory requirements as stipulated in the legislation of the countries in question and the commercial terms and conditions. The qualifying procedures for contractors will be similar to those for other tenders involving biocomponents under a two-stage process taking the form of an internet auction and direct negotiations. Potential suppliers should meet the criteria for balanced development and confirm that the product they offer has not previously been included in the National Index Target of the EU countries, including Poland. However, in submitting a tender to PKN ORLEN, potential suppliers will be obliged to confirm that a minimum 75% of the raw materials used in producing the esters originates from the EU.

This year, for the first time, potential suppliers will be able to submit two variant offers:

• supply for the period from January 2010 to September 2010,
• supply for the period from January 2010 to September 2012.

The ORLEN Group companies' estimated requirements for fatty acid methyl esters on individual markets for the period from January - September 2010 are:

• for Poland  - RME only - approximately 350,000 tons,
• for the Czech Republic  - RME/FAME - approximately 40,000 tons,
• for Lithuania  - RME only - approximately 30,000 tons.

The biocomponent will be destined for sale as fuel in its own right and as a direct constituent of diesel oil.