Production capital

Our Downstream, Retail and E&P assets:

• Six refineries located in Poland, Lithuania and the Czech Republic; total annual oil throughput capacity of more than 35.2m tonnes
• Access to feedstock and product pipelines and sea terminals: 3,700 km-long pipeline network and 39 storage depots and terminals
• Integrated petrochemical and refining assets : Olefins (Płock, Unipetrol), BOP (Płock), metathesis (Płock), PX/PTA (Włocławek), chemicals (Włocławek)
• Power generating units in three countries, including the CHP plant in Płock (415 MWe, 2,150 MWt) – the largest industrial power generating unit in Poland, and state-of-the-art CCGT units in Włocławek and Płock; total capacity of over 1,000 MWe

• Development of low-emission power generation: PKN ORLEN holds a licence to construct a wind farm in the Baltic Sea, with a maximum capacity of 1,200 MWe
• Central Europe’s largest retail chain of over 2,800 service stations
• Over 2,000 Stop Cafes and Stop Cafe Bistros at service stations
• Over 60 EV chargers
• Exploration and appraisal assets in Poland and Canada, with 2P oil and gas reserves totalling 197.3 mboe

• We continue efforts to build a multi-utility group and further grow our power generation business.
  The acquisition of the Energa Group and the planned acquisition of Grupa LOTOS are important steps in this direction. Diversified revenue streams make a company more resilient to market fluctuations and macroeconomic volatility. The creation of such a strong entity would also increase its ability to finance large projects, including offshore wind farms.
• We invest in petrochemical assets to strengthen the ORLEN Group’s position on European markets.
  A metathesis unit (Płock) and a PPF splitter (Mažeikiai) were placed in commercial operation in 2019. Also, work was continued on the ORLEN Group’s strategic Petrochemical Development Programme, under which a Research and Development Centre will be built in 2020. ANWIL started a project to increase fertilizer production capacities.
• PKN ORLEN is expanding its production assets to enable more efficient use of feedstocks.
  In 2020, we commenced the construction of a visbreaking unit in Płock with a view to maximising crude conversion. The new unit will increase the yield of light products: gasoline and diesel oil. The plant in Płock is also upgrading its hydrocracker, which will increase diesel output, and modernising a diesel hydrotreater.
• We invest in low- and zero-carbon energy sources.
  The Group has commenced a project to build a hydrogen purification unit, which will enable its marketing as a fuel for motor vehicles. PKN ORLEN is also developing technologies to store, transport and distribute hydrogen fuel. A letter of intent was signed with PESA Bydgoszcz in 2019 on the development of hydrogen powered rail transport. The Group works with municipalities (Metropolitan Association of Upper Silesia and Dąbrowa Basin, City of Płock) on the development of zero-emission hydrogen powered public transport service. Its hydrogen capabilities are being expanded – the Group owns hydrogen refuelling infrastructure in Germany and it is set to deploy hydrogen fuelling stations in the Czech Republic this year. The proposed offshore wind project is a response to global trends towards advancing renewable energy and a major contribution to Poland’s transition to a low-carbon economy.ORLEN Południe is being transformed into a bio-refinery. At the Trzebinia-based plant, Poland’s first unit for the production of eco-friendly propylene glycol has commenced. ORLEN Południe has also signed a contract for the purchase of a licence and front-end engineering design for a 2G bioethanol production unit in Jedlicze.
• We diversify oil supply sources and secure natural gas supplies.
  2019 saw a cut in Russian oil supplies delivered over the Druzhba pipeline that lasted 46 days and was the longest such interruption to date. The ORLEN Group was well prepared for that development having consistently implemented its strategy of diversifying crude supply sources. In 2019, the Group built and strengthened relationships with new and existing partners, including in Africa, the US and the Persian Gulf.
• We consistently leverage our retain potential.
  We rapidly roll-out the food and store format across the markets, including Poland, where 164 new O!SHOP convenience stores opened, and Germany, where the number of star Connect locations more than doubled. PKN ORLEN’s retail network expanded into Slovakia, with ten service stations operating on that market at the end of 2019. A co-branding process began in the second half of 2019, resulting in all service stations bearing the ORLEN brand.
• In the Upstream segment, we consistently pursue our strategy of focusing on the most promising assets.

Capex projects and acquisitions in the pipeline will require large capital outlays. The ORLEN Group spent PLN 5.5bn in capital expenditure in 2019.

The acquisition of the Energa Group and LOTOS Group will bring tangible benefits for employees at these companies. Energa’s power and refining staff, who are in extremely short supply on the labour market, will be a valuable addition to the ORLEN Group’s team and its human and intellectual capital.By joining a strong and diversified group with an established international presence, they will gain new opportunities for professional development. The construction of our Research and Development Centre in Płock will facilitate development of proprietary innovative technologies and patents in petrochemical, biofuel, bitumen and oil production. The facility will also serve as a modern platform for cooperation between PKN ORLEN and the worlds of science and business.

A strong group of companies will be able to deepen its engagement in social, cultural and sports initiatives in the regions where it operates. Its coordinated CSR policy will deliver greater and more thorough support for local communities. This also means reinforcement of social capital.

By investing in zero- and low-emission energy sources, we reduce our environmental footprint, which, in addition to boosting natural capital, will provide a response to changes in the EU legal environment.