OMV AG, Vienna, is investing €40 million to increase ethylene and propylene production capacities at subsidiary OMV Deutschland GMBH’s 3.8-million tonnes/year Burghausen refinery on the German-Austrian border in Bavaria, Germany.
Part of the operator’s strategy to realign its downstream operations for a petrochemicals-based future, the project—which will expand and modernize the refinery’s cracker units and petrochemical cold section—aims to increase feedstock for the neighboring Bavarian Chemical Triangle, OMV said.
“By expanding the cracker, OMV is consistently delivering on its petrochemical strategy for a future-proof refinery, said Thomas Gangl, OMV’s chief downstream operations officer.
“[The project] goes hand in hand with the growth in the chemical industry and serves as a response to increasing customer demand [while simultaneously providing] key economic stimulus for the region and for OMV’s Burghausen site,” Gangl added.
With initial groundwork for the project already under way using enhanced safety measures to prevent the spread of coronavirus (COVID-19) and slated for full execution during the refinery’s next turnaround, the expansion of Burghausen cracker units will increase ethylene and propylene production at the site by about 50,000 tpy, the company said.
The upgraded units are scheduled to enter operation during third-quarter 2022.
OMV’s 20.66% interest in EPS Ethylen-Pipeline-Süd GMBH & Co. KG’s ethylene pipeline, which—linked to the trans-European pipeline network—also allows the Burghausen refinery to sell its ethylene for transport abroad, according to the company’s latest factbook and annual report to investors.
Petrochemicals future
In its latest factbook and a November 2020 company presentation, OMV said it intended to further strengthen the competitive position of its European refining assets to reflect the region’s increasing shift in demand for high-value products.
By 2025, the company said it plans to invest up to €1 billion in three regional refineries—including the Burghausen refinery, as well as the 9.6-million tpy refinery in Schwechat, Austria, and 4.5-million tpy Petrobrazi refinery in the southeast region of Romania, near Ploiesti City—with more than 50% of this amount dedicated to petrochemical developments at the sites.
