PKN Orlen approves new unit for Plock refining complex

Polski Koncern Naftowy SA (PKN Orlen) has approved a previously proposed project to add a new visbreaking unit at its 327,300-b/d integrated refining and petrochemical complex in Plock, Poland (OGJ Online, Dec. 2, 2019).

Designed to increase the yield of light products such as gasoline and diesel oil, the new visbreaking unit will be equipped with an unidentified visbreaking technology jointly licensed by Royal Dutch Shell PLC and McDermott International Inc., PKN Orlen said in a release.

The operator additionally confirmed that it has awarded a 750 million-zloty contract for design, procurement, construction, installation, commissioning, and start-up services for the new unit to a consortium of KTI Poland SA and IDS-BUD SA.

PKN Orlen also said it has awarded additional contracts in the amount of about 200 million zloty for works related to supporting infrastructure for the project. Details of these associated contracts were not disclosed.

The new visbbreaking unit comes as part of the operator’s plan to improve crude feedstock flexibility and efficiency by increasing the yield of high-margin products via in-depth conversion of vacuum residue from the refinery’s crude distillation unit.

PKN Orlen said it expects the 1 billion-zloty visbreaking project—scheduled to enter commercial operation by yearend 2022—will add up to 415 million zloty to the company’s annual EBITDA.

While PKN Orlen did not reveal the specific Shell-McDermott technology to be implemented at the new unit, OGJ research based on information available from both Shell and McDermott’s websites indicates the only historical, jointly licensed visbreaking technology offered by the companies was the Shell Soaker Visbreaking technology (OGJ Online, July 1, 2014).

McDermott, however, confirmed to OGJ on Feb. 26 that the visbreaking technology licensing partnership with Shell was terminated in March 2019.

Hydrocracking, hydrotreating projects

Another project under way at Płock is an upgrade of the refinery’s hydrocracking unit that, once completed, will increase diesel oil production by 100,000 tpy, PKN Orlen said.

The operator said it is also executing a separate project to modernize a diesel hydrotreater at the refinery as part of a plan to boost diesel oil production by 150,000 tpy.

Scheduled to be completed in late 2020, the hydrocracking and hydrotreating projects are anticipated to add 200 million zloty to total annual EBITDA, the company said.