Poland: PMC Services PKN Orlen Signs Contract with Fluor for Olefin Complex
Under the terms of the agreement, Fluor will be responsible for technical consultancy and Project Management Contractor services for PKN Orlen’s olefin complex in Plock, Poland. Orlen also has plans to construct a new visbreaking unit across its refinery.
Poland – PKN Orlen’s Petrochemicals Development Programme is about to reach another milepost. As part of the project to extend the olefin complex in Płock (Poland), a contract has been signed for technical consultancy and Project Management Contractor (PMC+) services. It is expected to optimally prepare the project for successful delivery within the allocated budget and schedule.
“We have taken another major step towards the key milestone in our plans to develop the petrochemical business, which is the olefin plant extension. Petrochemicals have enormous potential and we are determined to make the most of it. Our capital projects to develop the petrochemical area will solidify our position on the European market while providing tangible benefits to the Polish economy, turning it from an importer into a net exporter of petrochemicals,” says Daniel Obajtek, President of the PKN Orlen Management Board.
The technical consultancy and PMC+ contract has been signed with Fluor, one of the world’s leading providers of engineering & design services. It guarantees proven, tailored-to-fit solutions designed to support complex projects in the energy and fuel sector. The services will involve end-to-end project management across all functional areas – from managing its timescales, costs, contractors and risks, through ensuring work safety, technical support and supervision of technical design standards, to managing procurement and actual execution. The works will engage a fully integrated team, made up of PKN Orlen employees and a PMC+ consultant.
“Given the scale of our venture, we have decided to deploy a consulting service within the PMC+ framework. In the case of particularly large projects, such as the olefin plant extension, this solution is a globally applied standard. Our contract with Fluor will fully integrate the project management, offering potential synergies and facilitating knowledge flows between PKN Orlen and the contractor,” stresses Zbigniew Leszczyński, Member of the PKN Orlen Management Board, Development.
Thanks to the PMC+ collaborative work model, the company will gain know-how in managing integrated capital projects. The model will also help develop and enhance the firm’s in-house capabilities to benefit its further projects. In addition, by effectively employing the industry’s best business practice, it will allow the company to strengthen its competitive advantage on the market.
The value of the petrochemicals and base plastics market is forecast to double by 2030. Demand for petrochemicals is set to rise, fuelled by the world’s expanding population, economic growth, and shifts in demand for industrial raw materials. Therefore, PKN Orlen is poised to take full advantage of its potential in petrochemicals.
Investments under the Petrochemicals Development Programme are expected to add some 30 % to PKN Orlen’s existing capacity, while ensuring a marked improvement in Poland’s overall trade balance in petrochemicals. The programme will be pursued until the end of 2023. Next year will witness the launch of a Research & Development Centre to generate a range of proprietary technologies. The ongoing projects to expand the phenol capacity and construct an aromatic derivatives plant are also at an advanced stage. Once they are completed, the company’s annual EBITDA is estimated to grow by PLN 1.5 billion, translating into measurable benefits for the company and its shareholders.
In addition to this, PKN Orlen has plans to build a new visbreaking unit on a turnkey basis to maximise yields of high-margin products across its Płock refinery. The project will cost approximately PLN 1 billion.
“We are a global brand seeking to optimise processes across all our refineries, both at home and abroad, with a view to strengthening our position on international markets. We are entering a next vital phase of our key project, which is the construction of a visbreaking unit in Płock. The visbreaker will help us to further maximise crude conversion, increasing profits and improving their stability,” says Daniel Obajtek, President of the PKN Orlen Management Board.
The project aims to achieve higher conversion and boost profit margins. Visbreaking is a proven technology, which is already used by the Orlen Group’s Czech and Lithuanian refineries. Visbreaking units require the lowest capital cost of any other available vacuum residue conversion technology.