LOTOS Oil awards Group II base oil project in Gdansk Refinery
LOTOS Oil, which is part of the LOTOS Group, has awarded a contract valued at more than EUR200 million (USD233 million) relating to the construction of a hydrocracking unit with associated logistic facilities, which will allow the production of Group II base oils at the Gdansk Refinery.
Project completion with fully operational facilities is expected by the first half of 2025.
The EPC Lump Sum-Turn Key (Engineering, Procurement & Construction) contract was awarded to KT – Kinetics Technology S.p.A., a subsidiary of Maire Tecnimont S.p.A.
High-quality base oils with lower environmental impact
The hydrocracking unit will be the second one in Europe and will be capable of producing high-quality base oils, with a lower environmental impact. International environmental regulations are driving the need for higher quality base oils, especially in the automotive sector, where engine oil manufacturers are responding to increasing demand for low sulphur and more energy-efficient products.
“We are delighted to continue our long-lasting, mutually beneficial cooperation with such a prestigious client, thanks to this third EPC project to be carried out within the Gdansk Refinery. With this award we further strengthen our footprint in Poland as well as our strong commitment to support the LOTOS Group in ensuring best environmentally performing processes and products,” said Pierroberto Folgiero, Maire Tecnimont Group CEO.
Through a network of its subsidiaries, LOTOS Group manages nearly 480 petrol stations in Poland, produces fuel and asphalt of excellent quality, and is the market leader in the category of technologically advanced modified bitumen (MODBIT) in the domestic market.
The LOTOS Group Refinery is the second largest refinery in Poland with nominal annual processing capacity of approximately 10.5 million tons of crude oil. The Gdansk Refinery was ranked among the top 25% of best refiners in the world, based on key indicators of competitiveness such as refining margin, energy efficiency, maintenance services efficiency and plant availability. It is considered the most modern refinery in Central and Eastern Europe.
