Orlen confident of Lithuanian backing for investment in Mazeikiu

"The Lithuanian government is considering the possibility of supporting an investment that will deepen the processing of crude oil at the Mazeikiu refinery," Daniel Obajtek told PAP. Łukasz Gągulski/PAP

The CEO of fuel giant PKN Orlen has said the company “is moving in the right direction” when it comes to getting the support of the Lithuanian government for its investment in the Mazeikiu refinery.

In September last year, Orlen said that it had requested support and co-financing from the Lithuanian government in order to implement Bottom of the Barrel (BoB) technology which, in refining, refers to the heavy residues in crude oil.

"The Lithuanian government is considering the possibility of supporting an investment that will deepen the processing of crude oil at the Mazeikiu refinery," Daniel Obajtek told PAP. "A team chaired by the minister of energy was appointed and we should learn the possible conclusions on this matter by the end of May. We are moving in the right direction."

Obajtek met with Lithuanian Prime Minister Ingrida Simonyte in Vilnius at the end of February to discuss the matter. He announced then that if the proposal presented by the Lithuanian side was satisfactory, a decision on the investment of increased processing in Lithuania could be made at the turn of May and June.

The investment in the refinery in Mazeikiu will help it become more resistant to macroeconomic conditions.

Moreover, the yield of high-margin products, mainly petrol, diesel oil and Jet aviation fuel is expected to increase by about 10 percentage points.