16-08-2022

Construction starts at refinery modernisation project in Lithuania

A ‘ground-breaking’ ceremony in Lithuania officially marked the beginning of the construction of the new Residue Conversion Unit at PC ORLEN Lietuva’s Mažeikiai Refinery, the only crude oil refinery in the Baltic States.

PC ORLEN Lietuva awarded Petrofac the contract, worth around EUR550 million (approx. US$640 million), in October 2021. The progamme involves the modernisation and expansion of the existing refinery complex and environmental upgrades. The project plays a significant role in the economy and energy security of the region and is also the biggest Polish capital investment in Lithuania.

Government officials and representatives of local authorities joined leadership from Petrofac and PC ORLEN Lietuva on site.

Guest of honour, Dainius Kreivys, Minister of Energy of the Republic of Lithuania, said: "Poland is an important strategic partner for us in the energy sector, and ORLEN Lietuva business in Lithuania stands as an example of such successful partnerships. The refinery ensures a stable supply of petroleum products to the entire Baltic region and stands among the most important industries for our energy security. Therefore current investments of ORLEN are meaningful and important to Lithuania because this contributes to the competitiveness of the Lithuanian economy and energy security."

Elie Lahoud, Chief Operating Officer for Petrofac’s Engineering & Construction division said: “The ground-breaking is a key milestone in the modernisation, environmental upgrade and expansion programme at the Mažeikiai Refinery. Our focus remains on safe, assured and timely delivery as we move forward in the construction phase of the new Residue Conversion Unit. We’re proud to be supporting ORLEN in transforming existing facilities to produce higher quality, more environmentally friendly fuels for a better future.”

Michal Rudnicki, General Director of PC ORLEN Lietuva, said: “In the context of ambitious energy transformation goals to be pursued by the world in the upcoming decades, the ambition of this refinery is to become the leader of a fair and sustainable energy transition in Central Europe. We completely understand that ambitious goals can be achieved only in close cooperation with our partners and all stakeholders. Our strategy and pursuit of the upcoming decade is the sustainable utilisation of resources.”