PKN Orlen inks agreement with Basell Orlen Polyolefins to supply upto 100,000 tpa of propylene

10-Apr-17

Poland's PKN Orlen has signed an agreement with Basell Orlen Polyolefins to supply up to 100,000 mt of propylene a year. Propylene will be supplied from the company's metathesis unit, which is currently under construction at the Plock site and is slated for startup in H1-2018. BOP, a 50:50 joint venture between PKN Orlen and Basell Europe Holdings, is Poland's only producer of polyolefins and the largest domestic producer of plastics. The value of the deal is estimated at Zloty 350 million (US$88.2 mln). BOP, a 50:50 joint venture between PKN Orlen and Basell Europe Holdings, is Poland's only producer of polyolefins and the largest domestic producer of plastics. The contract will remain in effect throughout the term of the JV agreement under which Basell Orlen Polyolefins Sp. z o.o. (BOP) was established in 2002. PKN ORLEN holds a 50% equity interest in BOP.

The company has the capacity to produce 400,000 mtpa of polypropylene, 320,000 mtpa of HDPE and 100,000 mtpa of LDPE.
“We have already secured a contract to sell the entire output of the Metathesis Unit, to guarantee full utilization of its future capacities. Thanks to the contract, Basell Orlen Polyolefins will be able to plan increased production of polypropylene. The contract is a part of PKN ORLEN’s strategy to grow its petrochemical business through synergies with BOP,” said Piotr Chelminski, Member of the PKN ORLEN Management Board, responsible for Power Generation, and Chairman of the Supervisory Board of Basell Orlen Polyolefins.