23-11-2012

Grupa LOTOS enters a consortium with Azoty Tarnów

On November 23rd 2012 Grupa LOTOS S.A. signed an agreement with ZakÅ‚ady Azotowe w Tarnowie-MoÅ›cicach to complete a preliminary feasibility study for two proposed investment projects – a steam cracker and polyethylene production unit, and an aromatics complex. If the feasibility study renders positive results, this will enable the partners to start design work on the selected alternative, thus offering Grupa LOTOS and Azoty Tarnów an opportunity to benefit from the recently-announced programme ”Polish Investments”.
  
The purpose of the cooperation struck between the GdaÅ„sk-based company and Azoty Tarnów is to form a consortium that will carry out the feasibility study work comprising an analysis of the technological and economic potential for building the petrochemical and chemical process plant at the premises of Grupa LOTOS and Azoty Tarnów.

The first of the alternatives put under review is a steam cracker. The technology enables production of light olefins: ethylene, propylene and buthylene, which are feedstock in plastics production.  The other alternative is an aromatics plant with supporting infrastructure. The complex of process plant producing aromatics as petrochemical intermediates would potentially comprise several newly-built units interoperable with each other and with Grupa LOTOS' existing infrastructure. The key customers for the products from the new units would be the Azoty Group.

The conclusions of the analyses performed on both alternatives will provide grounds for the Companies to reach, by the end of 2013, a decision concerning the establishment of a special purpose vehicle and joint implementation of the chosen alternative.