02.03.2022

PKN ORLEN to increase purchases of alternative crudes

PKN ORLEN has made arrangements to secure crude oil supplies for the needs of its refineries in Poland, the Czech Republic and Lithuania. The feedstock is being supplied to these locations on an ongoing basis. When supplies from across Poland’s eastern border are discontinued, crude oil will be sourced from alternative directions. For example, PKN ORLEN has reached an agreement with Saudi Aramco to increase the volume of deliveries by five tankers. In addition, supplies of crude grades from the North Sea region have been secured for ORLEN Lietuva. The continuity of the ORLEN Group’s refining operations in Europe is and will remain unthreatened. This is mainly a result of consistent diversification efforts pursued by the Group for the past four years. Not so long ago, in 2013, as much as 98% of the crude feedstock processed in Płock was REBCO oil sourced from Russia. Currently, the grade accounts for only about 50% of the plant’s crude slate, the balance coming from Saudi Arabia, the US and West Africa, among other directions.

- Our absolute priority is to maintain the operational continuity at all our locations and thus to ensure Poland’s energy security. Staying in touch with our partners, crude oil producers from around the world, we are able to secure reliable supplies from alternative sources. We already purchase crude oil on the spot market when needed to keep our refineries going. This is possible because for the past four years, together with the ORLEN Management Board, we have placed a strong focus on the goal of diversifying supplies. Additionally, our salt caverns at IKS Solino are full – in fact we are the only refinery in this part of Europe to have filled up its storage space for crude oil, which is further strengthening our independence - says Daniel Obajtek, President of the Management Board of PKN ORLEN.

The uninterrupted refining production guarantees stable fuel supplies to the market. Currently, there are no fuel shortages in Poland. Should it become necessary, PKN ORLEN is able to deal with any undersupply using output from its two Czech refineries and, additionally, from its refinery in Mažeikiai, Lithuania. In the case of the Lithuanian plant, transport of the product is possible both by rail and by sea.

All logistics processes supporting fuel deliveries at the ORLEN Group are also secured. The ORLEN terminals and storage depots are operating without disruption. As the Group is well-prepared to withstand the impact of the current situation, the availability of fuel at its stations is fully assured. This is a result of earlier investments and decisions made by the PKN ORLEN Management Board. In March 2021, PKN ORLEN repurchased OTP, Poland’s largest road haulier of liquid fuels, which has given the Group full control over the product along the entire logistics chain. In June 2021, it also bought a transshipment terminal for fuels in Mockava, through which large volumes of the Lithuanian product output from Mažeikiai can be delivered to the Polish market. In addition, PKN ORLEN has its own rail freight operator called KolTrans, which delivers fuel cargoes to virtually all of the Group’s depots across the country. For the past four years, PKN ORLEN has also consistently expanded the storage capacities of its terminals.