Tenth anniversary of PKN ORLEN’s strategic decision to invest in Lithuania
The Mažeikiai refinery accounts for almost a third of all oil throughput at the ORLEN Group. Having put in place numerous optimisation and innovation measures, ORLEN Lietuva has thus emerged as one of the Group’s pillars. The acquisition of the Lithuanian refinery was a strategic decision that enabled the Group’s expansion into Baltic States and balanced the region’s energy security.
“ORLEN Lietuva’s potential keeps growing. In 2018, its Lithuanian refinery accounted for almost 30% of the Group’s total oil throughput. We aim to constantly expand that potential, strengthening the company’s position in the region and within the Group. Investing in the future, it is important that we retain a historical perspective and remember that the project’s main initiator was prof. Lech Kaczyński, the late President of Poland and a friend of Lithuania, who played a key role in strengthening the region’s energy security, supporting the landmark project to acquire the Mažeikiai refinery. Today, it is of vital importance not only to our Group, but also to Poland and Lithuania,” said Daniel Obajtek, President of the Management Board of PKN ORLEN.
Thanks to the investments made by PKN ORLEN, the Mažeikiai refinery is now a highly advanced and efficient plant, producing premium quality fuels that meet all EU standards. The refinery is constantly being developed, with a PPF splitter designed to deliver highly processed propylene to be placed in commercial operation this year. Thanks to robust management, the financial condition of ORLEN Lietuva remains sound. Since 2015, the company has recurrently posted profits, with full-year profit figures in the record-breaking years of 2016 and 2017 having reached almost PLN 1bn. Over the last three years, the company has generated close to PLN 2bn in total profits. It has also improved operating performance, with oil throughput rising ca. 9%, from 9 million tonnes in 2013 to 9.8 million tonnes in 2017. Last year, ORLEN Lietuva also helped stabilise fuel supply on the Polish market as large volumes of diesel oil needed to be imported after the informal sector had been significantly curbed.
ORLEN Lietuva is Lithuania’s largest tax payer and exporter. The refinery supplies fuel to customers in the Baltic States and Ukraine, with almost 1 million tonnes of petroleum products shipped to Poland last year. The Mažeikiai refinery is the Group’s second largest refinery in terms of oil throughput, which is close to 10 million tonnes, compared with about 16.5 million tonnes processed by the Group’s largest refinery in Płock.
A co-author of the concept to acquire the Lithuanian refinery was the late Polish President prof. Lech Kaczyński. A plaque commemorating and honouring his contribution and commitment was unveiled today in Mažeikiai by Prime Ministers of Poland and Lithuania Mateusz Morawiecki and Saulius Skvernelis, and President of the Management Board of PKN ORLEN Daniel Obajtek.