ORLEN2030 Strategy sets out dynamic development of PKN ORLEN operations in Lithuania. At the meeting with Prime Minister of the Republic of Lithuania Ingrida Šimonytė, Daniel Obajtek, President of the Management Board of PKN ORLEN, presented the core directions of ORLEN Group strategic development in the context of regional energy security. Meeting attendees discussed on the investments planned into the crude oil refinery in Mažeikiai (hereinafter – the Refinery), its significance to the region, also on the transformation of the energy sector in a broad sense, perspectives of renewable energy sources development. D. Obajtek confirmed to the Prime Minister that the Concern is also to continue its investments into the expansion of the network of filling stations in Lithuania, as well as its modernization.
‘AB ORLEN Lietuva is a strategically important company, which manages the only crude oil refinery in the region and, therefore, can assure its energy security. Investments into the development of the company are beneficial to not only ORLEN Group, but also the Lithuanian economy. For this reason, we are surveying for construction of a new facility for upgraded processing of the bottom of the barrel. The facility would allow considerable decrease in, or even full giving up of fuel oil production; with it, the complexity of the Refinery would get close to that of the best crude oil refineries in the world. The products generated in the new facility would be subject to further processing thereof at the existing Refinery units, and the amount of the residual product would decrease by more than twenty times. We also foresee the possibility of cooperation in developing renewable energy sources. This direction is a core one both in the ORLEN2030 Strategy and in the National Energy Independence Strategy of Lithuania’, stated President of the Management Board of PKN ORLEN Daniel Obajtek.
Preparations are being made for construction of the new unit at Mažeikiai crude oil refinery. The license has been acquired, and front end engineering design has already been developed for the investment project. Upon further investments approved for the project, this would be the largest investment in the decade. Based on PKN ORLEN calculations, it will take approximately four years to implement the bottom of the barrel project. Increase of the yield of high profitability products from the current 73 per cent up to over 86 per cent would considerably reduce the sensitivity of AB ORLEN Lietuva to any changes in its macroeconomic environment.
As already announced before, ORLEN network of filling stations is to be expanded in Lithuania. In 2020, PKN ORLEN opened four new retail places at strategically attractive locations; the places meet the top standards of PKN ORLEN. This means that clients in Lithuania are welcome to use the services of the total of 29 filling stations. The local market is seen as a very perspective one; therefore, modernization works are in progress at three more filling stations in Lithuania. The modernization is based on the ‘teardown and rebuild’ principle, i.e. existing facilities are replaced with completely new, larger ones.
While expanding its retail network in Lithuania, PKN ORLEN is also looking for advance solutions to attract more clients. Erection of welcoming pylon signs with ORLEN logo displayed on such is planned at the major stations. Such are new on the Lithuanian market. The first pylon is to be erected at Žiežmariai filling station in March - April of the current year. The possibility to install electrical car charging stations, AdBlue dozers into motor cars, and digital signage is also being considered.
The current contribution of ORLEN Group retail segment to the Concern’s performance result is significant. The operating profit from the segment in 2020 was record breaking – 3.3 billion PLN. This area is important for enhancing of the value of all ORLEN Group in the coming decade. Expansion of the network in Lithuania corresponds to PKN ORLEN Strategy, which provides that almost 11 billion PLN will be allotted for retail market development before the year 2030. This is to increase the operating profit (EBITDA) of this area up to approx. 5 billion PLN per year.
ORLEN Lietuva inf.