PKN ORLEN (“Company”) informs that on 24 May 2021 the Company’s Supervisory Board gave consent for realization of the development of Olefins complex investment in the Production Plant in Plock (“Project”). The Project is a part of Petrochemical segment development program, announced by the Company on 12 June 2018.
Within the Project realization process it is assumed to receive State aid to reach the acceptable economic efficiency level for the project. There are also works in progress to obtain financing for the Project in project finance formula.
Total cost of the investment is estimated at the level of ca. PLN 13,5 bn. Closing of the building phase of the investment is planned for the first quarter 2024 and start of production at the Olefins III Complex for the beginning of 2025. The Company estimates that realization of the investment would increase EBITDA by ca. PLN 1 bn annualy.
With today consent of the Company’s Supervisory Board, it will be possible to sign the agreement for building of Olefins III unit complex in EPCC formula (Engineering, Procurement, Construction and Commissioning) for ISBL with the preferred bidder, i.e. Hyundai Engineering Co., Ltd. headquartered in Seoul and Técnicas Reunidas S.A. headquartered in Madrid, or with a company set up by those companies to realize EPCC agreement as a general contractor (“Preferred bidder”), after all contractual provisions are negotiated. According to today Company’s Supervisory Board decision, PKN ORLEN will conclude with the Preferred bidder a cooperation agreement to continue the negotiations of EPCC contract for ISBL and license agreements.
In connection with the Project there has been set up a company ORLEN Olefiny Sp. z o.o. within which the Project realization is planned.
Realization of the project has been accepted by PKN ORLEN Management Board on 18 May 2021.
See also: regulatory announcement no 26/2021 as of 24 May 2021, no 69/2018 as of 12 June 2018.