Poland's PKN Orlen commits to power plant, diversifying revenues

05 December 2012 14:51  [Source: ICIS news]

LONDON (ICIS)--PKN Orlen has moved forward with its strategy of diversifying revenues away from refining and petrochemicals by signing a zloty (Zl) 1.1bn ($348.1m, €266.3m) deal with General Electric and SNC-Lavalin Group for the construction of a heat-and-power plant, the Polish group said on Wednesday.

The 463-megawatt gas-fired installation is to be built in Wloclawek, northern Poland, with its start-up planned for December 2015, it added.

GE has also been contracted to provide maintenance for the plant for 12 years, for approximately Zl 200m, Orlen said.

Like other major Polish state-controlled companies, Orlen is under environmental pressure to help Poland switch a growing proportion of its energy mix away from coal-fired power plants, which currently account for around 95% of generated power in the country.

Output from the plant may be used to power Orlen's 600,000 tonne/year purified terephthalic acid (PTA) plant in Wloclawek, which was opened in June 2011, it added.

Orlen's newly released five-year strategy sees the company's petrochemicals capital expenditure (capex) decreasing from Zl 6.6bn during 2008-2012 to Zl 4.7bn during 2013-2017.

($1 = €0.76, $1 = Zl 3.16, €1 = Zl 4.13)

By: Will Conroy
+44 20 8652 3214

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