December 13, 2024 15:00

Polish petrochemical giant Orlen has decided to halt the Olefins III project, which was intended to boost cracking capacity at its Plock site in Poland by 60%.

The decision follows an in-depth analysis revealing a sixfold increase in projected costs, from an initial estimate of 8.3 billion PLN to 25 billion PLN. Including the construction of essential infrastructure, total costs would have surged to 51 billion PLN.

“Irregularities related to the capital investment process have been reported to the prosecutor’s office,” the company stated. Additionally, Orlen is considering pursuing a compensatory claim against former management board members, enabled by a recently adopted resolution of the General Meeting. "The decision to halt the project is the most prudent course of action, limiting potential losses caused by the misguided decisions of the previous management."

Halting the project will save approximately 15 billion PLN (around €3.52 billion), funds that Orlen plans to redirect toward projects that sustainably enhance the company’s competitiveness and benefit the Polish economy.

To mitigate the adverse economic impact of this decision, Orlen will repurpose existing infrastructure at the P?ock site for the Nowa Chemia (New Chemicals) initiative. Built on revised technological, operational, and business assumptions, the initiative will include a state-of-the-art facility for monomer production and expanded sales capacity in ethylene oxide and glycols, styrene, and the C4 fraction, with volumes optimized to meet market demand.
Starting around 2030, the New Chemicals project will take over the functions of the current Olefins II facility and will remain operational throughout the lifecycle of the Plock plant.

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