Hungary: Development Directions in Petrochemicals Mol Group to Invest $ 2 Billion in Strategic Projects
In order to allow further diversification in the propylene value chain MOL Group announced the investment of more than $ 500 million into its steam crackers in Hungary and Slovakia.
Bratislava/Slovakia — Slovakia's biggest oil refinery Slovnaft, owned by Hungary's MOL, will invest $ 500 million by 2020 to upgrade its petrochemical unit to diversify away from fuels, where demand is expected to decline, its chief executive said on Tuesday, Reuters reports. The investment is part of MOL's strategy to invest $ 4.5 billion in petrochemicals by 2030. Moreover, the Group announced that it has earmarked a total of at least around $ 2 billion as strategic capex for 2017-2021 related to the implementation of the new long-term strategy.
In refining the company intends to focus on improving efficiency and implementing the initiatives of the Next Downstream Program (2015-2017). As part of its long term strategy the group targets a gradual increase of the share of valuable non-motor fuel products to above 50 % by 2030 from less than 30 % currently. The Hungarian group plans to invest around $ 80-130 million into its refineries in Hungary and Slovakia to increase the flexibility of propylene and lubricants production.
MOL has also earmarked up to $ 1.9 billion until 2021 to develop its petrochemicals business. The yield improvement of propylene and investment into attractive propylene derivatives will be the main direction for the next five years. It also announced investments in propylene oxide based polyols, a high-value product applied in the automotive industry, packaging and furniture manufacturing.