Logistics

Mandatory Reserves

2008 was the final year for implementing the amended Mandatory Reserves Act in terms of securing an increase in crude oil and liquid fuel reserves up to the target value corresponding to 76 times of daily net crude oil import.

Moreover, early in 2008 we had to obtain an additional increase in crude oil reserves in order to comply with the requirements of the International Energy Agency, involving a new method of calculating the amount of reserves.

In 2008, ORLEN Group stored 76-day mandatory reserves at the Production Plant in Płock, in underground storages of IKS “Solino” SA and at 23 storage facilities across Poland. 14-day reserves were covered by the Material Reserves Agency.

Pipelines

In 2008, PKN ORLEN SA used 274 km of its own pipelines and 570 km of product pipelines belonging to the national operator, PERN “Przyjaźń” SA.

We signed a letter of intent with PERN “Przyjaźń” concerning the construction of an additional pipeline section Płock-Koluszki-Boronów, of which we expect measurable benefits. With this pipeline, fuel pipeline transport will retain its cost advantage over rail transport, and we will ensure security of supplies to southern Poland.

The share of fuel transported from the Płock refinery via pipelines represented 64% of total finished fuel transported.

Liquid fuel dispatch structure from Płock per type of transport in 2008 r. (%)

Storage Facilities

For the purposes of receiving, storing, dispatching and handling of fuel, ORLEN Group logistics operated the total of 25 facilities in Poland (own Fuel Terminals and third party storage facilities) in 2008.
At the end of 2008, finished product storage capacities at IKS SOLINO amounted to 1.1 mn m3. IKS “Solino” SA was also capable of storing 3.5 mn tonnes of crude oil.

Rail Transport

PKN ORLEN transported via rail approximately 6.1 mn tonnes of cargo, including 4.6 mn tonnes of engine fuels. Fuel transported in 2008 via rail under a license held by PKN ORLEN amounted to 2.5 mn tonnes, which is approximately 0.38 mn tonnes more than in 2007. The share of the Company’s own transport in rail transport represented 41%, i.e. 1 percentage point above the 2007 value, whereas fuel transport from Płock refinery via rail amounted to 29.1% of total finished fuel transport.

Road Transport

Fuel deliveries to our stations on the territory of Poland in 2008 were provided by one of PKN ORLEN Capital Group companies, ORLEN Transport SA.

Maritime Cargo Handling

We handled approximately 1 mn tonnes of cargo in the seaports in Gdynia and Świnoujście, mainly heavy heating oil for export (0.57 mn tonnes).