PKN Orlen lets contract for olefins plant in Poland

Polski Koncern Naftowy SA (PKN Orlen) has let a contract to CB&I, Houston, for the license and engineering design of a metathesis plant for the on-purpose production of propylene at its integrated refining and petrochemical operations in Plock, Poland.

The propylene unit will use CB&I’s proprietary Lummus olefins conversion technology based on metathesis to produce an additional 100,000 tonnes/year of polymer-grade propylene for PKN Orlen to use internally, the companies said in separate releases.

Feedstock for the unit will be sourced from PKN’s 16.3 million-tpy refinery and petrochemical complex in Plock and will lift total propylene production from PKN Orlen’s Plock operations to 550,000 tpy, according to the companies.

Construction on the project is scheduled to begin in 2016, with the start of production from the new unit planned for late 2017, PKN Orlen said.

A value of the contract was not disclosed.

The metathesis plant plays a key role in PKN Orlen’s petrochemical investment program under the company’s recently unveiled 2014-17 strategy, said Jacek Krawiec, president of PKN Orlen’s management board.

The project aims to help the company meet its goal of developing the downstream segment by further integration of the value chain, according to Krawiec.

PKN Orlen said it will invest more than $500 million over the next 4 years to implement major projects in the downstream sector.

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