02 April 2012 17:42 [Source: ICIS news]
LONDON (ICIS)--Polish refiner Grupa LOTOS is set to take its first step in petrochemical production with the completion of a 120,000 tonne/year mixed xylenes (MX) plant, the company said on Monday.
The commissioning of the plant in Gdansk, on the northern coast of Poland, was imminent, with the first commercial batch of MX expected to be produced at the end of June, it added.
In late 2010, Grupa LOTOS signed a contract to sell MX worth zlotych (Zl) 805.3m ($258.9m, €194.0m) to Mitsubishi International Corporation (MIC) in Dusseldorf, Germany. MIC is a wholly-owned subsidiary of Japan’s Mitsubishi Corporation.
Under the 42-month deal, the first deliveries of MX must be made between 15 May at the earliest and 15 November 2012 at the latest.
“The objective behind the conclusion of the agreement [and the subsequent construction of the plant] is to further diversify Grupa LOTOS’s product portfolio, while reducing the share of noxious aromatic hydrocarbons in the gasoline blending pool produced by the Gdansk refinery, as some of the product leaving the catalytic reforming unit (reformate) will be further processed at the xylene separation unit,” LOTOS said.
“At present, any surplus volumes of reformate are exported. Thanks to the production and sale of mixed xylenes, which is used as petrochemical feedstock, Grupa LOTOS will be able to generate a sustainably higher margin on sales, compared with that generated on reformate exports,” it added.
($1 = €0.75, $1 = Zl3.11, €1 = Zl4.15)
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