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Recommend to a friendIn 2009, we continued our efforts to meet the National Index Target (NIT) for biofuels. The NIT set for PKN ORLEN was fulfilled at 4.623%.
In total, in order to meet the NIT in 2009, we released:
In November 2009, we started up another hydrogen production unit – WW II. The unit was planned as the final stage in the hydrogen management process after the start-up of the Diesel Desulphurisation VII and Paraxylene units. Currently (until the latter two units are in operation), WW II stabilises the hydrogen network end ensures its efficient utilisation. Should one of the Hydrogen Production Units break down, the loss will be much reduced, as there will be less need to substitute it with other production units. More readily available supplies of hydrogen mean more flexibility in conversion processes, in terms of their possibilities and intensification.
We implement an Advanced Process Control (APC) system at the Production Plant in Płock. We expect that APC will significantly increase the output of our most precious products, depending on the current level of their margins.
Following the Fuel Study performed by Solomon Associates, we individually developed several tools to monitor certain key performance indices, such as: energy media consumption, number and reasons of production units’ arrests, quality parameters of products. We use the monitoring data to calculate key performance indices (KPI) of our production units and refineries in order to review the Company’s competitive position. KPIs are also indicators that we consider in our current and future operational decisions.
Another programme in the production area, aimed at increasing our profit, was the NCM3 project implemented in association with the Solomon Associates consulting company. NCM3 lead to a number of initiatives to improve the performance of the plant in Płock, to bring it to the level of the best companies in the world. In 2009, the economic effects of those initiatives amounted to appr. PLN 23 mn.
In 2009, we started preparing for pilot energy consumption tests at the DRW III and Olefins II units, focusing in particular on energy efficiency analysis and proposed solutions to reduce energy consumption levels.
On 8 July 2009, we signed a contract with Rafako to design, deliver and install (a turn-key project) a modern heat recovery steam generator at the FKKII unit for the cooling technological gas. The energy thus recovered will be used to produce up to 40 tonnes/hour of 4 MPag technological steam. We expect to start the operation of the steam generation in the autumn of 2010.
Also, early in July, we resumed an investment project involving a new boiler no. 8 at the Combined Heat and Power Plant of the Production Plant in Płock. With this boiler, the Płock facility will improve its total technological steam balance and will be able to modernise the existing boilers at the Combined heat and Power Plant. The project is necessary to fulfil environmental standards with respect to nitrogen oxide and dust emission, which are expected to enter into force in 2016. The boiler will generate up to 420 tonnes of steam per hour, the steam parameters being 13.6 MPag and 5400C. We plan to start up the boiler no. 8 by late June 2010.
Production volume of selected refinery products in PKN ORLEN in 2008–2009 (Płock, ‘000 tonnes)
| 2008 | 2009 | Dynamics 2008/2009 | |
|---|---|---|---|
| Crude oil processing | 14 218 | 14 526 | 2,17% |
| Total petrol | 2 800 | 3 055 | 9,11% |
| Total diesel fuel | 5 078 | 5 330 | 4,96% |
| Ekoterm Plus heating oil | 840 | 790 | -5,98% |
| Aviation fuel | 418 | 291 | -30,38% |
| Propane - butane fraction | 221 | 210 | -4,98% |
| Total fuels | 9 358 | 9 676 | 3,40% |
| Fuel output (%) | 65,82 | 66,61 | 1,20% |
| Output of white products (%) | 77,98 | 78,08 | 0,13 p.p. |
Biofuel volumes generated in 2009 prove that since the start-up of the unit in 2004, Trzebinia has been a pioneer manufacturer of biofuels on the Polish market and an experienced player on the market of alternative energy sources, offering top quality methyl esters. The quality of biofuels produced in Trzebinia is due to the choice of the best suppliers of high-quality raw materials, high-tech biocomponent production facilities and experienced and qualified staff. From January to late December 2009, the BIO unit generated appr. 94,000 tonnes of rapeseed methyl esters (RME), (given the maximum annual production capacities of the plant of 100,000 tonnes).
When it comes to crude oil processing, the Trzebinia Refinery used appr. 65% of its total production capacities in 2009. The Company continues cooperation with PGNiG, based on the crude oil supplies contract made in December 2009, to which PGNiG supplies crude oil mined at its facilities located in the west and northwesterly parts of Poland.
Production volume of selected refinery products in 2008-2009 (Trzebinia, ‘000 tonnes)
| 2008 | 2009 | Dynamics 2008/2009 | |
|---|---|---|---|
| Crude oil processed | 238,7 | 246,1 | 0,20% |
| Production plant | 111,5 | 111,7 | -9% |
| Rapeseed methyl esters | 93,3 | 93,8 | 0,56% |
75% of the crude oil processed in the Jedlicze refinery in 2009 was supplied from domestic deposits. The 16,000 tonne drop in the volume of processed crude oil compared to 2008 was due to a reduced volume of imported crude oil supply – by 23,500 tonnes.
Production at the Rafineria Nafty Jedlicze is mainly based on the following four groups of products: heating oil, base oil, solvents and special purpose petrol. The largest group of products manufactured at the Jedlicze refinery is heating oil used for heating purposes, including heavy heating oil used in the production of bituminous mass.
Production volume of selected refinery products in 2008–2009 (Jedlicze, ‘000 tonnes)
| 2008 | 2009 | Dynamics 2008/2009 | |
|---|---|---|---|
| Cude oil processed | 80 | 67,6 | -15,60% |
| Waste oil processed | 33,3 | 35,4 | 6,40% |
| Diesel Heating Fuel | 82,9 | 61,2 | -26,20% |
| Solvents | 10,4 | 15,3 | 47,60% |
In 2009, we reported an increased production of road, modified and industrial bitumen compared to the previous year. The increase was due to higher market demand.
In 2009, ORLEN Asfalt offered new modified bitumens manufactured according to the PN-EN 14023:2009 standard, instead of the previous modified bitumens manufactured according to the IBDiM Technical Approval. Industrial bitumens were monitored according to the new reference document, PN-EN 13304:2009. The standard for road bitumens changed as well, and we adjusted our production to the new PN-EN 12591:2009 standard.
In 2009 domestic bitumen sales went up by 21%, while the volume of export sales went down, and yet the profitability of export was higher than in 2008. The Company used the surplus of products for export to increase its seasonal sales domestically.
Share in the domestic bitumen market in 2009 (1.58 m tonnes)
Source: Own study based on market information.
Production volume at ORLEN Asfalt in 2008–2009 (‘000 tonnes)
| 2008 | 2009 | Change in the volume | Change | |
|---|---|---|---|---|
| Road bitumen | 692,36 | 741,67 | 49,31 | 7% |
| Industrial bitumen | 17,07 | 21,7 | 4,63 | 27% |
| Specific products | 0,38 | 0,18 | -0,2 | -53% |
| Total | 709,8 | 763,54 | 53,74 | 8% |
Geographic structure of export sales at ORLEN Asfalt in 2009 (%) – total sale 41,453 Mg
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