MOL secures $150m EBRD loan for Slovnaft petchem revamp

02 July 2012 17:24  [Source: ICIS news]

LONDON (ICIS)--MOL has signed a $150m (€118.5m), eight-and-a-half-year loan deal with the European Bank for Reconstruction and Development (EBRD) to help finance petrochemical capital expenditure at Slovak subsidiary Slovnaft, the Hungarian oil, gas and petrochemical group said on Monday.

The EBRD loan will be put into MOL's €300m investment programme at Slovnaft that will include construction of a 220,000 tonne/year low density polyethylene (LDPE) plant and reconstruction of the company’s 210,000 tonne/year ethylene plant, it added.

The new LDPE 4 production unit will replace all seven of Slovnaft's ageing polyethylene [PE] production lines, and also increase polymer output by 42,000 tonnes/year, according to information from Slovnaft division Slovnaft Petrochemicals.

LDPE 4 is due to be in operation by November 2015 after two years of construction work, and will produce as many as 30 types of PE, enabling Slovnaft to pursue new customers with very specific requirements throughout the EU, the division added.

In December last year, Slovnaft awarded Italy-based process engineering firm Maire Tecnimont a €204m contract to deliver the technology for LDPE 4, to be located in Bratislava.

The London-headquartered EBRD is owned by 63 countries and two intergovernmental institutions including the EU's European Investment Bank (EIB).

Its aim is to foster transitions to market economies in central and eastern Europe and other regions. 

($1 = €0.79)

By: Will Conroy
+44 20 8652 3214

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