In line with its strategy, the ORLEN Group is investing in Lithuanian assets to reinforce the market position of ORLEN Lietuva, its strategic subsidiary operating the Baltic Sea region’s only refinery, which already runs on crude oil sourced fully outside of Russia. During his meeting with Ingrida Šimonytė, Prime Minister of the Republic of Lithuania, the PKN ORLEN CEO Daniel Obajtek presented the Group’s key strategic objectives the delivery of which would strengthen the economies of both countries and, first and foremost, enhance the energy security of this part of Europe. The talks revolved mainly around further expansion of the refinery in Mažeikiai and the Group’s plans to invest in wind power, hydrogen and small modular reactors.

Daniel Obajtek, President of the PKN ORLEN Management Board said:
"Lithuania is for us an important business partner. We are forging stronger ties by opening to new cooperation opportunities. The current unsettling times present not only a challenge, but also a big opportunity for further growth. We must make the most of it. This is why we are investing in a strong energy sector, based on state-of-the-art solutions and clean generation sources. We are gearing up to make investment decisions for energy projects in Lithuania, which will be vitally important to the entire region. We are staying in touch with our Lithuanian partners. Energy is yet another area for our collaboration, as energy security is a priority for both Lithuania and Poland."

Wind capacity expansion is among the strategic development directions that will determine the ORLEN Group’s future. The Group has already invested in onshore wind projects in Poland and will be the first Polish enterprise to start the development of an offshore wind farm in the Baltic Sea. Also Lithuania has offshore projects in the pipeline. The ORLEN Group intends to take part in the upcoming auction for the development of offshore wind farms with a capacity of 700 MW in the Lithuanian part of the Baltic Sea.

The Group is also looking into a potential investment opportunity to develop onshore wind assets with a total capacity of up to 57 MW near its Lithuanian refinery in Mažeikiai. Preparations are now under way to make the investment decision.

Aligned with ORLEN’s plans for wind power development in Lithuania is a possible investment in green hydrogen generation. The Group also recognises the potential of the SMR technology, which it has already presented to its Lithuanian partners. These projects would mark further stepping stones in the ORLEN Group’s energy transition and pursuit of its ambition to achieve carbon neutrality by 2050, with an added benefit of strengthening the energy security of Lithuania.

The ORLEN Group is already taking concrete steps towards these goals. The refinery in Mažeikiai owned by ORLEN Lietuva, the only one in the Baltic Sea region, has already been fully weaned off Russian crude supplies. It currently sources the feedstock mainly from the North Sea region, as well as from the Persian Gulf and West Africa. Crude oil cargoes are delivered to Mažeikiai by sea via Būtinga, the location of ORLEN Lietuva’s crude oil terminal.

As announced earlier, the Group also has plans to invest in deep crude conversion at Mažeikiai. With a value estimated at EUR 641m, this will be the largest capital project ever undertaken by the ORLEN Group in Lithuania. It will increase the yield of high-margin products by 12%, to over 84%, from less than 72% today, enhancing the Lithuanian refinery’s overall profitability. The Group is currently in the process of securing building permits for the project. Slated for completion by the end of 2024, it will add as much as ca. EUR 68m to the ORLEN Group’s annual EBITDA.

About PKN ORLEN

PKN ORLEN is a Polish company and one of Central Europe’s largest refiners of crude oil. We specialize in processing crude oil into world-class unleaded petrol, diesel, heating oil, and aviation fuel as well as plastics and other petroleum related products.

We hold licences for onshore and offshore oil and gas exploration throughout the country. One of our shared priorities is to appraise and exploit natural gas from unconventional plays. Our adopted development direction is to transform PKN ORLEN into a multiutility complex with a foothold in the power generation business.