Lithuania: Plant Engineering Petrofac Bags 640 Million Dollar EPC Contract for Refinery Project

Editor: Ahlam Rais

Orlen Lietuva has awarded an EPC contract to Petrofac for modernizing, upgrading and expanding its existing Mažeikiai Refinery in North-West Lithuania. With this move, the company intends to develop cleaner fuels and enhance the plant’s operational and carbon efficiency.

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The lump sum contract comprises engineering, procurement, construction, start-up and commissioning services.
The lump sum contract comprises engineering, procurement, construction, start-up and commissioning services.
(Source: Petrofac)

London/UK – Petrofac has announced that it has been awarded an Engineering, Procurement and Construction (EPC) contract, valued at approximately 640 million dollars, from Orlen Lietuva to support a comprehensive modernization, environmental upgrade, and expansion program at its Mažeikiai Refinery in North-West Lithuania.

PROCESS Insights 2020-05
Challenges for EPC Contractors

With an influx of largescale petrochemical construction projects, EPC Contractors will have to be confronted with challenges such as finding enough capacity and quality of construction manpower, delayed permits etc. which require an EPC strategy to stay competitive in this ever-growing market.

This 12-page Process Insight will discuss the current changes in the EPC business and the impact of these changes on EPC projects. Besides the effect of the Coronavirus as well as the current oil price crash on the contracting industry will also be analyzed and an outlook for the industry will be given.

The lump sum contract comprises engineering, procurement, construction, start-up and commissioning services, as Orlen Lietuva invests to expand the existing refinery complex, raise capabilities, meet the requirements for cleaner fuels and improve operational and carbon efficiency of the plant. The scope of work encompasses mainly greenfield EPC development, with some brownfield modifications, as well as Front End Engineering Design (FEED) of relevant utilities and offsites. The contract includes the addition of a new residue hydrocracking facility and improvement of the existing facility. Project completion is planned by the end of 2024.

PC Orlen Lietuva is an Orlen Group company, operating the sole refinery in the Baltic region. The Mažeikiai refinery is important to the Polish and Lithuanian economies.

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