Contract for propylene from Metathesis Unit

PKN ORLEN will supply up to 100,000 tonnes of propylene annually to Basell Orlen Polyolefins. The contract covers the production volume of the Metathesis Unit, currently constructed in Płock and scheduled for commissioning in the second half of 2018.

The annual value of the propylene supply contract is approximately PLN 350m. The contract will remain in effect throughout the term of the joint venture agreement under which Basell Orlen Polyolefins Sp. z o.o. (BOP) was established in 2002. PKN ORLEN holds a 50% equity interest in BOP.

We have already secured a contract to sell the entire output of the Metathesis Unit, to guarantee full utilisation of its future capacities. Thanks to the contract, Basell Orlen Polyolefins will be able to plan increased production of polypropylene. The contract is a part of PKN ORLEN’s strategy to grow its petrochemical business through synergies with BOP - said Piotr Chełmiński, Member of the PKN ORLEN Management Board, responsible for Power Generation, and Chairman of the Supervisory Board of Basell Orlen Polyolefins.

The Metathesis Unit, currently being built at the Płock Production Plant, will deliver polymer grade propylene. The Plant’s current nominal capacity of 450,000 tonnes of propylene will be raised to 550,000 tonnes per year. The project will cost approximately PLN 400m.