who lives in the town of Mažeikiai in the north west of Lithuania
She is the first one in the Baltic states and
while there are only a handful across the world
“The official scientific term is an expert in sensory analysis of honey
Sensory analysis is used in the food industry in general to assess either quality or consumer preferences
“This means that we use our senses – what we see
and what we taste,” Rasa Nabažaitė explains her profession
The Honey Sommelier Register is curated by Italy
It is the country where most of the different types of honey are harvested
The essential skill to learn is to be able to confirm the botanical origin of honey
says she wanted to learn more about honey and then pass on her knowledge to others
The Mažeikiai resident demonstrates polyfloral and monofloral honey collected in different countries
Italian almond,” she lists the monofloral honey varieties in different glasses
“I have this year’s summer honey from our bees
which has quite a lot of linden blossom flavour.”
She compares them to honey collected by the same bees last year
so it is best stored in glass or ceramic jars
since honey can change its flavour if it stays in contact with other materials
“The smell is one of the most important things
We spread it by swirling the honey along the sides of the glass
Just as there is a ‘grouped circle’ for coffee and wine
one has to wait until honey has completely dissolved in the mouth
“Only then do all the flavours fully emerge.”
The flavours and aromas can be very diverse
Traditional Lithuanian linden honey will have a minty aftertaste
“I have heather and chestnut honey for bitters
There is another very bitter honey that most people don’t want to taste a second time
which is strawberry arbutus,” the honey expert smiles
“Vetch honey is a little like acacia honey in terms of its flavour characteristics.”
There is little chance of much autumn honey
so the big honey season ended much earlier
The bees started to run out of food quite early this year
at least we definitely had less autumn honey during the last spin,” says Nabažaitė
There are around 300 types of honey worldwide
polyfloral honey – honey from different flowers – is the predominant type
Orlen SA subsidiary Orlen Lietuva AB is on pace with construction of a major plant included as part of the ongoing modernization program at its 10-million tonne/year (tpy) refinery in Mažeikiai
1,500-tonne key reactor of a new residue hydrocracking unit (RHCU) to be installed at the refinery has arrived for offloading at Lithuania’s port of Klaipeda and will be delivered about 145 km to the construction site via a 2-week road journey beginning this weekend
Part of the operator’s planned bottom-of-the-barrel improvement program
the Mažeikiai RHCU project progressing on schedule to reach mechanical completion by yearend 2024 for targeted production of cleaner
“The [RHCU] plant will bring about a substantial improvement in the profitability and margins of the Mažeikiai refinery
making the company less dependent on the volatile macroeconomic environment
This will enable further development of the company towards new products and extension of the value chain,” said Daniel Obajtek
Orlen’s chief executive officer and president
Alongside increasing the refinery’s yield of high-margin products to 84% from the current 72%
commissioning of the RHCU also will enable the site to reduce crude oil throughputs while continuing to produce a similar volume of finished fuels
the Mažeikiai refinery will be able to achieve production yields by processing only 8 million tpy of crude
down 2 million tpy from its design capacity
The operator most recently estimated total capital investment on the RHCU project at €640 million (OGJ Online, May 4, 2023).
Robert Brelsford joined Oil & Gas Journal in October 2013 as downstream technology editor after 8 years as a crude oil price and news reporter on spot crude transactions at the US Gulf Coast, West Coast, Canadian, and Latin American markets. He holds a BA (2000) in English from Rice University and an MS (2003) in education and social policy from Northwestern University.
pledging around EUR 54 million in state support for a billion-euro project to modernise the Mažeikiai-based oil refinery
Following the Cabinet’s vote
the agreement was signed Wednesday on behalf of Lithuania by Minister of the Economy and Innovation Lukas Savickas
Minister of Finance Rimantas Šadžius and Minister of Environment Povilas Poderskis
"We are not talking about an annual support here
which says that this is a general state incentive of slightly more than 8% of the project’s value
(...) but not more than EUR 54 million," Savickas told reporters after signing the document
Lithuania’s financial contribution to the project will total just over 8% of the total project cost
This support measure has been coordinated with the European Commission
The environment minister noted that Lithuania’s investment in the Mažeikiai refinery project will help cut climate-damaging emissions from one of the country’s largest industrial enterprises
20% more products will be extracted from oil
The exact amount of emissions to be reduced will depend on the specific capacities of the refinery at the time
and it is still to be decided," Poderskis told reporters
Orlen Lietuva currently implements a EUR 970 million worth project under way to increase the refining conversion rate
aimed at bolstering the production capabilities of its refinery in Mažeikiai
The project is recognised as a project of strategic importance and will therefore benefit from a range of state financial support measures: corporate income tax breaks
compensation for the indirect costs of pollution permits and reimbursement of investments in infrastructure
said the company will aim to complete the project by 2026
despite the difficult geopolitical situation and rising costs
He recalled that the initial plan was to finish the project in 2025
CEO of the Orlen Group Ireneusz Fonfara met with Seimas Speaker Saulius Skvernelis and Prime Minister Gintautas Paluckas for talks on the modernisation of Orlen oil refinery based in Mažeikiai and prospects of development of small modular reactors
Orlen is the leading employer in the Mažeikiai region and remains a cornerstone of Lithuania’s industrial landscape
a vital reloading station facilitating product exports to Poland and Ukraine
The Polish company started the upgrades to its Lithuanian refinery in 2021
It is the only one of its kind in the history of Lithuanian industry
It is a billion-euro project,” says Tomas Digaitis
the scale of the project was witnessed by many when a giant reactor had to be transported from the Port of Klaipėda to Mažeikiai
Roads had to be reinforced and bridges remodelled in order to accommodate the colossal cargo
The cost of the refinery upgrade has increased by around 400 million euros since 2021
The modernisation is meant to improve efficiency
says Digaitis: the same amount of petroleum products will be produced with less input and less waste
“The plant in Lithuania will first of all ensure a stable supply of fuel to the region
a shorter supply chain to Lithuanian customers will also ensure a good price,” the Orlen Lietuva spokesman says
the company asked the previous government for tax breaks
“It is about corporate tax breaks for investment projects and other measures provided for in the law,” Digaitis says
The previous government promised the support but did not deliver it
“The last government did not implement the commitments it made
it is facing an unconventional situation where letters of intent have been exchanged
but these commitments are not being honoured,” he says
“Everything was delivered regarding the transportation
but when it comes to the corporate income tax break
Orlen started the project before the law was passed under which it could apply for that particular tax break,” explains former energy minister Dainius Kreivys
a project that is already in motion cannot receive the tax break
Amendments were sought to support the plant in a different way – amendments were needed
“So it’s not like the new government is doing the work that the previous one failed to do – it’s simply a continuation of the work,” Kreivys argues
the government plans to designate the Mažeikiai plant reconstruction as a project of national strategic importance
the company can expect to be compensated for the indirect costs of the pollution permits
Since Orlen is requesting support for part of the project and not for the whole project
the ministry says that such state aid does not need to be coordinated with the European Commission
But the total support cannot exceed 80 million euros
The NGO Circular Economy argues that investments by polluting businesses should not be subsidised by the state
pollution taxes should be used to invest elsewhere
Economy Minister Savickas argues that without modernisation
Orlen Lietuva plans to complete the upgrades by next year
Oct 12, 2021 | Business, Energy & Climate
Poland’s state-owned oil giant PKN Orlen has announced that it has begun work on expanding and modernising its refinery in Lithuania
in what Poland’s government says will be the “largest investment in the history” of its Baltic neighbour
The Mažeikiai oil refinery in northwestern Lithuania was launched in 1980
“The refinery needs to be modernised,” Orlen’s CEO
“There must be big investments there.”
He said that expansion would also “increase the profitability of the refinery”
enabling earnings (EBIDTA) to increase by €68 million annually
as well as “strengthen the energy security of the region”
Inwestycja w instalację pogłębionego przerobu ropy w @ORLENLietuva przyniesie wzrost EBITDA. Zwiększenie uzysku produktów wysokomarżowych wpłynie na stabilność dostaw paliw w państwach bałtyckich i w Polsce. Umacniamy naszą pozycję lidera transformacji energetycznej w regionie pic.twitter.com/dUeeHGtxOl
— Daniel Obajtek (@DanielObajtek) October 8, 2021
The project will be overseen by Orlen Lietuva
The company forecasts that it will take four years to complete and be worth €641 million
This is “a historic day for ORLEN Lietuva and the Lithuanian economy,” wrote Obajtek on Friday
as he announced that the modernisation and expansion project had entered its “implementation phase”
He said it was the “largest investment project carried out in Lithuania”
That claim was repeated by Poland’s minister for state assets
who declared that the project “in Możejki is the largest investment in the history of Lithuania”
He noted that Orlen was able to afford such investments thanks to its profits
which reached 4 billion zloty (€874 million) in the first quarter of the year
Can Polish energy giant Orlen be a future global champion?
“It is of great importance for the entire economy and energy security…also of all countries in the region,” said Sasin
Mažeikiai is the only crude oil refinery in the Baltic states and one of the largest employers in Lithuania
noting that it employs 1,500 people directly and 4,500 through services and subcontracting
Orlen has made a number of large investments in recent years, buying Energa as well as signing initial agreements to take over its smaller rival Lotos Group and state oil and gas firm PGNiG
Polish state firm buys further Norwegian gas licences
AB Orlen Lietuva Refinery is the second largest in Orlen Capital Group
with a capacity to process 10 million tonnes of crude oil per year (though the company says it is more efficient to limit production to 8 million tonnes)
Obajtek and Sasin met with Lithuania’s president
Obajtek also met with the country’s prime minister
Fourteenth newspaper editor leaves since Polish state oil giant media takeover
Main image credit: Juozas Šalna/Flickr (under CC BY 2.0)
Maria Wilczek is deputy editor of Notes from Poland
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Figures from PiS have dismissed the claims against Karol Nawrocki as “lies”
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Karol Nawrocki even suggested that the state security services were involved in creating the scandal
Apr 30, 2025 | Defence, Hot news, News, Politics
That response will include “large Polish and NATO exercises in Poland”
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People and projects from around the PETROFAC world
Adam Cheesman is marking one year since moving to Perth in Australia permanently from the UK
As Operations Director he was tasked with growing our business in the region
finalising the strategy for the market entry of our Operations business and growth of the overall business,” he recalls
“To be sat here now and looking back over the past year
we have achieved what we set out to do despite the challenges that Covid-19 has thrown at us
“We now have a stronger business after putting the foundations for growth in place
we have a team that is growing to meet the demands of the new work we have secured
There can be a mixture of emotions at the outset of a project
There’s a myriad of factors to consider and what can seem like an endless list of decisions to make
what happens at the beginning of a project can have an effect on its achievements and perhaps even its failures
It can certainly influence the journey travelled
Project Director Karim Zoghbi sums it up nicely: “We have to see the big picture; every decision we make now has an impact on how we get to the end product
we’ll have an easier journey – whether that’s from a progress perspective
we’ll have to live with our mistakes for the next three years
It’s about being able to envision the journey we want to take.”
laying the groundwork for a project becomes even more complex
This was the case for the team working on the Mažeikiai Refinery modernisation project in Lithuania
The project will expand the existing 40-year-old refinery complex to meet requirements for cleaner fuels
while also improving the operational and carbon efficiency of the plant
The scope of work encompasses mainly greenfield EPC development
as well as Front End Engineering Design (FEED) of relevant utilities and offsites
has been involved in the project since day one
after becoming aware there was an opportunity with the client PC ORLEN Lietuva
being half Ukrainian and after spending his university years in Eastern Europe and he instantly recognised the huge potential for business development of winning a project in this part of the world
He recalls the early stages of the process
It was vital to have boots on the ground to research the market
and understand their standards and capabilities
we have to know the market because you cannot base an estimation on a project in the Middle East or the UK as we are in the Baltic states,” he explains
“The challenges and execution are different
Khaled continues: “If we put down a footprint here
We will be able to build up the business project by project
We are investing for the long term rather than the short or medium term.”
It’s with this attitude in mind that the team has approached the project
HOW THE TEAM ARE LAYING THE GROUNDWORK FOR THE FUTURE SUCCESS OF THE MAŽEIKIAI REFINERY MODERNISATION PROJECT IN LITHUANIA
LABOUR REQUIREMENTS AND HRInvesting in local talent and the wider region is a key tenet of Petrofac’s business model and this project is no different
The team has already established a good relationship with the local municipality
and they are in regular communication about the project
There have been challenges in finding the right people with the right skills for the project
Lithuania is a country of around three million people and Mažeikiai is its only refinery
situated near a small town of less than 30,000 people
Many engineers and those with technical backgrounds work outside of the country on other projects across Europe
only local subcontractors have been employed so far
The team will also scout for graduate engineers and establish a training area and zone to bring in more local talent
“One of the main challenges was finding subcontractors with the capacity to take on the scope of work,” says Khaled
“As we won't be able to find one subcontractor to execute the whole job
area one’s execution is not dependent on area two.”
then there are the numerous HR processes that need to be put in place to onboard workers
explains: “We are new to Lithuania and having no previous presence or set up
where we have an established office and team
and we know the processes for mobilising employees
Tasks for Samer and the team include all HR-related matters
and ensuring Petrofac adheres to Lithuania’s legislative and employment requirements
“Every country has its own labour laws,” he continues
“And you have to accommodate your company’s policies and procedures because they might not quite work in that country
you have to calibrate what you can and cannot do
We recruited an experienced Admin Manager and an HR Manager with experience in the local market and who are familiar with the country and its labour laws to help in the initial set up
as well as continue to lead and support on HR matters throughout the duration of the project.”
Elie Lahoud (left) takes part in the ‘ground-breaking’ ceremony to mark the new Residue Conversion Unit in Mažeikiai
CONSTRUCTION PERMITS AND CERTIFICATIONSAnother significant step for any kind of construction project is acquiring the construction permits and certifications
without these construction could not start
aptly describes his job as integrating the EPC concept to fit into local law – and on this project he had to grapple with a very different system to what he’s used to
procurement and construction work and progress in parallel
the full technical design needs to comply to local standards
and then be signed off by a local designer before you are allowed to move forward with construction
The full design also had to be examined by an independent body known as an ‘expert company’ to move forward with the permit application
He explains: “It was difficult to find the right local design partner because of the size and scope of the project
It is one of the biggest projects in value and complexity that has been executed in the country
Everything we're doing here is for the first time.”
And there are implications further down the line
adds Monzer: “Take a job in the Middle East
If your foundation had to move by a few metres for whatever reason
and you would just need to revise your drawings
Petrofac also needed to be certified as a construction company in Lithuania to execute the project
“I had to demonstrate to the independent body that we have all the qualifications for doing the entire construction and secure the required certifications to execute the job,” added Monzer
SUSTAINABILITY AND PROTECTING NATUREAfter successfully receiving the building and construction permits last year
The team has been building facilities for workers
as well as the aforementioned training facilities
Safety controls including turnstiles and camera towers have been installed
There has also been a strong focus on sustainability at the start of the project
Environmental Impact Assessment studies have been conducted and the team is aiming to reduce our carbon footprint on the project where possible
“The project is in a beautiful area and we have a responsibility to protect it,” says Construction Manager Garo Arapajian
The team has come up with a particularly innovative solution for installing the project’s foundations
The area has a high-water table – meaning that if you excavate half a metre
the team will need to excavate three metres to install the foundations
“Usually around 30 machines would need to run for a year to pump out the water
however we are planning to use an existing drainage system that takes water to a nearby lake,” explains Garo
thus saving energy and reducing carbon emissions
The team will of course monitor the quality of water to ensure there is no contamination and we will install a small separator as a precaution.”
IT'S ALL GOWe are now 18 months into the project and it’s all go
The Home Office team in Sharjah led by Project Manager Mohammad Siddiquie has already completed procuring the project’s long-lead items and manufacturing and deliveries are now well underway at the project site
He explains: “One of the most critical parts of this project is the reactor – we placed the order for this within two months of starting the project
“We have also completed 90% of the model review and now we have received the construction permit for the plant
The most important thing right now is to open the work front to site by delivering material and approving detailed design packages
The building construction work is ongoing and the plant work has already commenced
We will focus on preparing the detailed design packages for the plant
as these also need to be approved by the independent design expert.”
“Once all the material is delivered to site and the engineering wraps up
the role of the Home Office becomes more limited
We will then be supporting site as and when required,” adds Mohammad
but there is no doubt that they have given themselves the best possible start
OFFSHORE INSTALLATION“Each of the HKZ jackets took about a year to make
but many of those months coincided with the pandemic’s peak,” recalls Project Manager Abdulrahman Dandachi
“We were at the final assembly stage of the first jacket when Covid struck worldwide
we couldn’t get materials through the usual routes or modes of transport
We couldn’t fly in suppliers or experts for final commissions or testing
like the giant cranes that handle heavy lifts.”
quarantines and travel bans across the world threatened to throw the project off course
seeking out new routes and scouring the local market for products and expertise
On one occasion we had to evacuate everybody and apply all the protocols
This meant mass testing of more than 700 people in two days
contact tracing for those testing positive and quarantining
We took all the precautions and followed all the rules
but we didn’t have to close the yard – not for a single day
“We would have faced huge costs if we didn’t load the jacket onto the barge in time but for every challenge
It was the ultimate test of our capabilities and will
Camaraderie and competition… life on site in DuqmRead more
The trials and triumphs of the Duqm Refinery projectRead more
If you have any comments or contributions,contact petrofacts.editorial@petrofac.com
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The investor relations are intended to build corporate credibility on the capital market
which lies at the core of investments in deep crude conversion
This key component of the hydrocracking unit will be transported to ORLEN Group’s refinery in Mažeikiai within the next two weeks
The new plant will make it possible to increase the output of high-margin products as early as 2025
thereby enhancing the profitability of the Lithuanian facility and bolstering the energy security of the entire region
“ORLEN Group’s investment in Mažeikiai is the largest Polish project ever carried out in Lithuania
The plant will bring about a substantial improvement in the profitability and margins of the Mažeikiai refinery
making the company less dependent on the volatile macroeconomic environment
This will enable further development of the company towards new products and extension of the value chain,” says Daniel Obajtek
CEO and President of the Management Board of ORLEN
the reactor arrived at the port of Klaipeda in early August
The total weight of the load is approximately 2,200 tonnes
with the reactor itself weighing around 1,500 tonnes
The transport is planned to start at the weekend and will take place during night hours at an average speed of 3 km/h
The designated route covers approximately 145 kilometres and will traverse regional roads in Klaipeda
The transport will be carried out by Mammoet
The logistical operation is estimated to take approximately two weeks and has been planned in collaboration with the Lithuanian General Directorate of Roads
The project to build the deep crude conversion unit in Mažeikiai is the largest ever capex project carried out by the ORLEN Group in Lithuania
The project is slated for completion by the end of 2024 and will add as much as about EUR 68m to annual EBITDA
This will be achieved by increasing the yield of high-margin products by even 12%
in order to produce the expected fuels volume
ORLEN Lietuva processes up to 10 million tonnes of crude oil per year
Once the hydrocracking unit is put in operation
it will be possible to obtain a similar volume of fuels with the processing of 8 million tonnes of crude oil per year
Polski Koncern Naftowy Orlen SA (PKN Orlen) subsidiary Orlen Lietuva AB has let a contract to Petrofac Ltd
and construction (EPC) for work supporting the ongoing modernization
and expansion program at the operator’s 10-million tonne/year (tpy) refinery in Mažeikiai
As part of the lump-sum contract awarded in late-April
and commissioning services for new installations intended to expand and further enhance the refinery’s ability to meet more stringent requirements for production of cleaner fuels
Installations included within the work scope of the less-than €200 million contract target improving the site’s operational and carbon efficiency
This latest contract for the Mažeikiai refinery modernization program follows Orlen Lietuva’s previous award to Petrofac in October 2021 for delivery of EPC and commissioning services on a residue conversion unit to be built as part of the operator’s planned bottom-of-the-barrel improvement project
Petrofac’s scope of work on that contract covered the addition of a new residue hydrocracking unit (RHCU) and associated outside battery limits (OSBL) installations
EPC works for RHCU’s new OSBL specifically include installation of a new amine regeneration unit and stabilization tower
as well as interconnecting pipework and tie-ins to existing refining units and associated system modifications
Part of the operator’s broader transformation in line with the global energy transition
the more-than €640 million RHCU project—which began construction in August 2022—is scheduled to reach mechanical completion in 2024 and will enable the refinery to process its high-sulfur fuel oil production into cleaner
As part of the refinery’s modernization, Orlen Lietuva also let a contract in February 2021 to DuPont Clean Technologies to license its proprietary alkylation and spent acid regeneration (SAR) technologies for the addition of new STRATCO alkylation and MECS SAR units at the site, both of which are scheduled for startup in 2025 (OGJ Online, Feb. 11, 2021)
Robert Brelsford joined Oil & Gas Journal in October 2013 as downstream technology editor after 8 years as a crude oil price and news reporter on spot crude transactions at the US Gulf Coast
He holds a BA (2000) in English from Rice University and an MS (2003) in education and social policy from Northwestern University
Petrofac will support the refinery’s modernisation
Petrofac has received a $640m contract from PC ORLEN Lietuva
to support the expansion of the Mažeikiai Refinery in Lithuania
Petrofac will be responsible for engineering
start-up and commissioning services for the expansion programme at the refinery
It will support a comprehensive modernisation
which is said to be important to Poland and Lithuania
The scope of work includes greenfield engineering
construction development and some brownfield modifications
It will also include front-end engineering design of relevant utilities and offsites
Petrofac will install a new residue hydrocracking facility and undertake improvement to the existing facility
ORLEN Lietuva is investing at the refinery to boost its capabilities while meeting the requirements for cleaner fuels
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The refinery is also being upgraded to improve operational and carbon efficiency
The project is slated for completion by the end of 2024
Petrofac Engineering & Construction chief operating officer Elie Lahoud said: “We are delighted to have secured such an important refinery project within the European Union as we demonstrate our growth strategy in new geographies
“Petrofac has a well-established track record and significant experience in the refining sector
as customers transform existing facilities to produce higher quality
and we look forward to developing our relationship as we deliver locally
on a project that is an important part of Lithuania’s energy infrastructure.”
the Mažeikiai refinery has a designed capacity of 10Mtpa of crude oil
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We have a strong position in some of the most resilient sectors of the upstream oil and gas market
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along with a strong safety record in delivering projects in refining and petrochemicals
Our story in Lithuania began with the Mažeikiai Refinery modernisation project
the only crude oil refinery in the Baltic states and a strategic energy infrastructure project
We are supporting PC ORLEN Lietuva on a comprehensive modernisation
Our operations in Lithuania are split between the Mažeikiai Refinery in the northwest of the country and the office in the capital Vilnius
Our workforce comprises a mixture of local and international employees
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PKN Orlen SA subsidiary Orlen Lietuva AB has let a contract to DuPont Clean Technologies
to provide technology licensing for a grassroots alkylation unit to be built at its 10-million tonnes/year refinery in Mažeikiai
DuPont Clean Technologies will supply alkylation and spent acid regeneration (SAR) technologies for the refinery
and technical services for the proprietary STRATCO alkylation and MECS SAR units
The STRATCO alkylation unit will use LPG in the conversion process to produce 6,000 b/sd of alkylate
while the 75-tonnes/day MECS SAR unit will provide the refinery a consistent supply of sulfuric acid to be used as catalyst for the alkylation unit
Intended to help increase the Mažeikiai refinery’s complexity
and profitability to ensure its long-term competitiveness
the STRATCO alkylation and MECS SAR units—both scheduled for startup in 2025—will enable Orlen Lietuva to generate low-sulfur
low-RVP alkylate with zero olefins that meets Euro 6-quality standards
Orlen Lietuva’s ongoing modernization program at the Mažeikiai refinery also includes proposed construction of a residue conversion unit under the operator’s planned bottom-of-the-barrel (BOTB) improvement project
the company said in its latest annual report to investors
Orlen Lietuva said it expects to complete the BOTB project in 2023 at an estimated budget of $385.3 million
parent Orlen said a project to increase distillate yields also is under way at the Mažeikiai refinery
Further details regarding either the BOTB or distillate yields projects have yet to be disclosed
A ‘ground-breaking’ ceremony in Lithuania officially marked the beginning of the construction of the new Residue Conversion Unit at PC ORLEN Lietuva’s Mažeikiai Refinery
the only crude oil refinery in the Baltic States
PC ORLEN Lietuva awarded Petrofac the contract
The progamme involves the modernisation and expansion of the existing refinery complex and environmental upgrades
The project plays a significant role in the economy and energy security of the region and is also the biggest Polish capital investment in Lithuania
Government officials and representatives of local authorities joined leadership from Petrofac and PC ORLEN Lietuva on site
Engineering & Construction at Petrofac; Dainius Kreivys
Minister of Energy of the Republic of Lithuania; Michal Rudnicki
Minister of Energy of the Republic of Lithuania
Chief Operating Officer for Petrofac’s Engineering & Construction division said:
Mažeikiai Refinery ground breaking - 11 August 2022
According to its spokeswoman Kristina Gendvilė
the reactor is expected to arrive in Mažeikiai on August 18
“Active work is underway to adjust the delivery timetable to eliminate a stop in Aleksandrija [in Skuodas District] and to ensure that the cargo goes directly in Židikai [in Mažeikiai District] early Wednesday morning
and we will stick to the same schedule from there,” Gendvilė told BNS on Monday
“The project team says tonight they should move along the route they were supposed to follow yesterday.”
The 1,500-ton reactor got stuck on a gravel road a few hundred meters from a rest area in the village of Erlenai on Sunday night
The Erlenai valley was considered the most difficult part of the route because of the high hill and the road on the site of the former peatbog
“The risk of this happening had been taken into account
then slabs are brought from the Bega terminal
and the road is secured with metal plates,” Gendvilė added
The delivery of the massive 1,500-ton reactor to the oil refinery 145 km from the port started early morning on August 6
6.5-metre-wide and 10-metre-high Italian-made reactor
which will be installed in a deep crude conversion unit
is due to arrive in Mažeikiai after midday on August 18
Mammoet Baltic is in charge of the delivery that is mainly being done at night
The reactor will be used for the upgrade of the Mažeikiai facility
which is currently estimated to cost up to 970 million euros
It’s the largest investment project in Lithuania in Orlen’s history since 2006
and it’s expected to be completed by the end of 2024
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The Moscow court-appointed administrator of Yukos oil company’s residual assets
seeking to block the sale of Yukos’ majority stake in Lithuania’s oil industry to that country’s government
The suit ostensibly protects the interests of Yukos’ creditors
which include the Russian state based on retroactive tax claims
the move appears designed to position the Russian state company Rosneft to take over the Mazeikiai refinery and associated enterprises in Lithuania
which account for at least 10% of the country’s GDP
Rosneft seems set to lay such a claim as parent company of Yuganskneftegaz
formerly the Yukos company’s largest production unit in Russia
which Rosneft took over in 2005 as part of the Kremlin-directed destruction of Yukos
authorized Rosneft last month to recover from Yukos $482 million that those banks had lent to Yukos prior to the company’s demise in Russia
the Moscow-appointed administrator specifically accuses Yukos’ London-based management of attempting to sell its 53.7% stake in Mazeikiai to the Lithuanian government
“in blatant disregard” of the Moscow Arbitration court’s orders and the administrator’s instructions
The Moscow court and Rebgun had blocked any transactions with Yukos properties and shares as of March 28 and extended that order on March 29 to cover Yukos assets outside Russia
These actions are not those of an impartial justice or contract enforcement in a market economy
but form rather a part of a Kremlin-driven process to control private property in Russia and beyond
in line with Russia’s use of energy as a strategic tool
The Kremlin seeks to manipulate Western judicial and market mechanisms in this process
Also on April 13 the Yukos management in London responded that the company does not own shares in Mazeikiai
the 53.7% stake in the refinery and associated enterprises is owned by the Netherlands-registered Yukos International
According to the company’s and Lithuania’s legal advisers in London and the Netherlands
the jurisdiction of Russian courts and the Russian administrator does not extend to Yukos assets outside Russia
The Lithuanian government and Yukos had agreed in principle several months ago that Vilnius would acquire that 53.7% stake for $1.2 billion
according to Yukos board chairman Viktor Gerashchenko in Moscow (he has not moved with the management to London)
the company has now raised the price to $1.4 billion (AP
the hike would seem designed to stall the transaction
forcing the Lithuanian government to return to the parliament to authorize the additional funds and allowing Moscow extra time for legal maneuvers
The hike could also potentially discourage strategic investors who are preparing to participate in the second stage of the transaction
the Lithuanian government would re-sell that stake
plus at least half of the government’s 40.66% stake
in a single package to a strategic investor for the same price per share as that paid to Yukos by the government
To thwart that second stage and discourage foreign strategic investors
the Russian government does not allow non-Russian oil companies to supply crude oil to the Mazeikiai refinery through Russian territory
Kazakhstan’s KazMunayGaz is almost certainly the most suitable strategic investor in Mazeikiai from Lithuania’s standpoint
does not consent to the transit of KazMunayGaz-extracted oil through the pipeline from Atyrau (Kazakhstan) to Samara (in Russia on the middle Volga) and from there to Lithuania
Moscow stonewalls on a proposal to ship KazMunayGaz-owned oil from Primorsk — the Gulf of Finland terminal of the Baltic Pipelines System — by tanker to Mazeikiai
KazMunayGaz is now discussing a three-cornered swap option with Norway’s Statoil for shipping oil to Lithuania
Kazakhstan would deliver certain volumes of oil in the Caspian Sea to the Norwegian company
which is a participant in several large-scale Caspian projects
Statoil would then deliver oil volumes of equivalent value from Norwegian extraction operations in the North Sea to the Mazeikiai maritime terminal at Butinge on the Baltic Sea
The Butinge terminal (a state-of-the art installation completed in 2001 by the Oklahoma-based Williams International company) has a capacity of 14 million tons annually and accepts tankers of 150,000 tons capacity
This option — or other possible swap operations — would enable the partners to bypass the territory of an obstructionist Russia
The Statoil option has the additional merit of enabling the Norwegian company to pump the oil received from Kazakhstan directly into the Baku-Tbilisi-Ceyhan pipeline
thereby raising the latter’s profitability
KazMunayGaz has offered $1.2 billion for repurchasing Yukos’ stake as soon as Yukos sells it to Lithuania
The Kazakh company would end up with a stake of 75% or 80% by also acquiring at least half of the Lithuanian government’s stake
KazMunayGaz is offering to invest $1 billion in the continuing modernization of the Mazeikiai refinery
The Kazakh company is also interested in using the refinery at a level near its design processing capacity of 15 million tons of crude oil annually
almost double the amount that the Kremlin-harassed Yukos was able to supply annually in 2004-05
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Petrofac announces it has been awarded an Engineering
Procurement and Construction (EPC) contract
valued at around EUR550 million (approx US$640 million)
from PC ORLEN Lietuva to support a comprehensive modernisation
and expansion programme at its Mažeikiai Refinery in North-West Lithuania
The lump sum contract comprises engineering
as ORLEN Lietuva invests to expand the existing refinery complex
meet the requirements for cleaner fuels and improve operational and carbon efficiency of the plant
The contract includes the addition of a new residue hydrocracking facility and improvement of the existing facility
Project completion is planned by the end of 2024
Chief Operating Officer – Engineering & Construction
PC ORLEN Lietuva is an ORLEN Group company
operating the sole refinery in the Baltic region
The Mažeikiai refinery is important to the Polish and Lithuanian economies
It is one of Lithuania’s largest companies
of whom approximately 90% are residents of Mažeikiai and neighbouring towns
Another 4,500 people are employees of external service providers and subcontractors
a company operated by Swedish furniture trade company Ikea Group
has purchased a 45-megawatt (MV) wind farm in the Mazeikiai district
which is one of the country's most efficient wind farms
the park was launched just over six months ago
This is the group's first investment in the Baltic states
with the deal to be finalized by the end of March
The farm's operator Pamario Jegainiu Energija was sold by Orion Asset Management
which is operated by Orion Management Partners group
and a Dutch-capital fund Energy Investment Fund
"We are investing in renewable energy to support our business and to accelerate the transition to a low carbon economy
This new acquisition brings us closer to our objective of producing as much renewable energy as we consume in our operations by 2020," Ikea's chief sustainability officer Steve Howard said in a press release
the sales process attracted an interest of both local and international investors
and final offers were made by five potential buyers
Orion Asset Management said in a press release
Orion investors are said to be able to expect more than 25 percent in the internal rate of return (IRR)
The park costs the builders about 72 million euros
Ikea Group said it would become independent in terms of energy by 2020 and secure all its energy needs from renewable sources
The group operates 415 wind energy parks and has launched 730,000 rooftop solar energy modules
Ikea Group has earmarked 3 billion euros in investments in renewable energy sources
it has already invested 1.5 billion euros since 2009 and plans to invest further 600 million euros in wind and solar plants
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Procurement and Construction (EPC) lump sum contract from ORLEN Lietuva
as it continues to support a comprehensive modernisation
and expansion Programme at the Mažeikiai Refinery in North-West Lithuania
The project has a value less than 200 million euros
Petrofac’s scope of work encompasses the design
Petrofac’s scope will further enhance the plant’s capability to meet requirements for cleaner fuels by improving its operational and carbon efficiency
In October 2021 Petrofac was awarded a lump sum engineering
start-up and commissioning services contract from ORLEN Lietuva
This included the addition of a new Residue Hydrocracking Unit (RHCU) for the facility
which is the only crude oil refinery in the Baltic States
The new Offsite Battery Limit (OSBL) EPC for RHCU includes the installation of a new Amine regeneration unit and stabilisation tower
interconnecting pipework and tie-ins to the existing refinery units
General Director of Public Company ORLEN Lietuva
Petrofac’s Chief Operating Officer – Engineering & Construction
Rudnicki has confirmed to LRT.lt that he has been dismissed as CEO of Orlen Lietuva
Rudnicki wrote on his LinkedIn page that he was “open to new challenges and experiences”
“I can confirm that the CEO was dismissed on October 31,” Orlen Lietuva spokeswoman Kristina Gendvilė told BNS on Friday
who had been deputy CEO for sales and logistics
Rudnicki became the CEO of Orlen Lietuva in 2018
He joined the Polish oil giant in 2006 and
was the head of the company’s retail segment in Lithuania
Orlen’s branch in Lithuania was headed by Ireneusz Fąfara since 2010
According to the latest data from the Lithuanian Tax Inspectorate
the group paid 387 million euros to the state budget in the first three quarters of this year
Read more: Lithuanian towns and cities light Christmas trees – photos
LRT.lt takes a look at the most expensive Christmas decorations in Lithuania this year
Vilnius and Kaunas have spent similar amounts on their main Christmas trees
but this year the capital city has splashed out
An additional 60,400 euros was spent on the tree lighting event
The total budget for the 6-week Christmas in the Capital programme approved by the City Council amounts to 393,000 euros
The municipality noted that this year’s Christmas tree composition
is an invitation to celebrate the 700th anniversary of Vilnius
in the form of a three-tiered elegant cake
made of luminous Baroque-style decorations: rhythmic columns and decorative chandeliers
All three tiers are decorated with Baroque ornaments in luminous white
At the centre of the artistic composition is a Christmas tree decorated with golden pendants and sparkling garlands
The top of the tree is adorned with a cake candle flame in the form of a fountain,” says Municipality spokesman Gabrielius Grubinskas
There has also been some controversy around the Christmas budget
with the Financial Crimes Investigation Service (FNTT) probing the circumstances of Vilnius City Municipality’s spending on the tree and other festive attributes
Read more: Vilnius launches holiday season with cake-shaped Christmas tree – photos
After spending 160,000 euros on the Christmas tree last year
Kaunas will welcome Christmas this year on a similar budget (including the decoration of the Town Hall Square where the tree stands)
An additional 170,000 euros has been earmarked for the tree lighting event
head of the Culture Department of Kaunas City Municipality
this year the Town Hall Square resembles a sparkling winter fairy tale inspired by the works of Mikalojus Konstantinas Čiurlionis
“Visitors to the Christmas Town are greeted from afar by a 24-metre spruce
Over 500 handmade decorations and constellations cover its festive mantle
Alongside are additional decorations commemorating the work of Čiurlionis and frames to capture the festive mood
Read more: Kaunas lights Čiurlionis-inspired Christmas tree – photos
which spent 48,400 euros to the Christmas tree (78.6 thousand euros in 2021)
The preliminary estimate for the tree lighting ceremony on December 2 was around 15,000 euros
the spruce tree in front of the Church of St Francis of Assisi is 18 metres tall
Its base is made of a metal frame covered with natural fir branches
It is decorated with huge luminous ribbons of light gold
garlands of warm light and flashes of light
The spruce is enveloped in a glowing shroud 30 metres in diameter
“Mažeikiai is unique because the Christmas decorations last from the beginning of Advent (when the Advent wreath
is blessed and the first candle is lit in the Old Town
in Burbos Square) until the middle of December
the Christmas Town will be opened in the Old Town
with a festive fair and Santa’s residence,” reads the municipality’s comment
After spending 46,800 euros on the Christmas tree last year
Panevėžys is spending slightly less this year
The Christmas tree lighting event took place on December 2 and cost 12,000 euros
“This year’s Christmas decorations in Panevėžys resemble a collection of precious stones
The Christmas tree has several branches that stretch out into the square
There is also a Christmas post office next to the tree
where if you drop a letter into a special box
the tree starts playing Christmas music and sparkling with extra colours,” comments Panevėžys City Council
Marijampolė has allocated 40,000 euros for the 2022 Christmas tree
The Christmas tree lighting ceremony was budgeted at 10,000
The municipality says that inside the 19-metre tree there is a romantic space and a Christmas post office
and the tree is constantly changing its colours
“Marijampolė celebrates Christmas in a romantic way – this is the motto of the capital of the Sudūva region,” the municipality informs
Klaipėda City Municipality has spent a minimal amount on the Christmas tree
but this year it created a Christmas miracle for its residents without spending a cent
Klaipėda stands out not only because of its traditionally lively Christmas tree and its classical decoration
but also because of the cost of all the works related to the tree’s installation
delivering and decorating the spruce tree were covered by private companies
“It is also important to mention that the tree will be decorated with LED garlands
so that the total monthly electricity costs will amount to only 403 euros until January 10,” says Šulskė
This is the seventh year that Klaipėd invited people to donate a tree to the city
Klaipėda was choosing from among 23 offers
It comes from the Botanical Garden of Klaipėda University
“The impressive Norway spruce was among the two favourites after the announcement of the vote of the citizens of Klaipėda
the construction of an educational centre will begin on the site where the Botanical Garden’s spruce tree used to grow
so the tree would have had to be cut down anyway
According to specialists of the Klaipėda Botanical Garden
It is about 30 years old,” according to Šulskė
The total budget for the Klaipėda Christmas-New Year’s Eve series this year will amount to 89,900 euros
Read more: Klaipėda lights up for Christmas – photos
The reactor arrived in Juodeikiai in Mažeikiai District at around 10:00 on Monday and will now undergo preparation for its installation
“The reactor is already waiting to enter the construction site for the deep oil conversation unit
[...] It will now undergo preparation until mid-October for the installation at the site
It’s scheduled to be installed in early October,” Kristina Gendvilė
“It will be put into operation with the whole unit
and we plan that it will be operational in around late 2024 or early 2025,” she said
The delivery has not caused significant road damage
the reactor’s delivery was more successful than expected
The delivery took longer than planned as the reactor was initially scheduled to arrive in Mažeikiai on August 18 but was stuck on the gravel road for a bit and was also slowed down by the heatwave in Lithuania
The 145 km journey of the massive 1,500-ton 100-meter-long
and 10-meter-high Italian-made reactor to the oil refinery started in Klaipėda early on August 6
It is the largest investment project in Lithuania by Orlen since 2006
"Orlen is renouncing Russian oil and plans to produce products only from [Saudi] Aramco's Saudi Arabian oil," said Kreivys
most of Orlen Lietuva's refined oil has been Russian
Lithuanian Prime Minister Ingrida Šimonytė also said Orlen planned to completely renounce Russian crude in the near future
said the company has been diversifying its crude sources since 2014 and refining not only Russian oil
adding that it would not be difficult for the company to give up Russian oil
around two-thirds of the oil processed at the refinery was Russian
adding that "the numbers are turning the other way"
Orlen said it was taking steps to increase oil supplies from alternative sources
and also announced it had agreed with Saudi Aramco to buy five additional North Sea oil tankers
some of which will be used by the Mažeikiai refinery
Poland's Orlen announced last year it was buying 57 percent of crude for its refineries from Russia under long-term supply contracts
Orlen said it acquired around 8 percent of its oil from Saudi Arabia
The reactor is now scheduled to arrive on Monday
which is currently located in the northern Lithuanian district of Skuodas
it is unsafe to move the reactor when the asphalt heats up to 36 degrees
“As we have very high outside temperatures
it is unsafe to transport until it cools down
so we are waiting for a later time,” Gedvilė said
The 145 km journey of the massive 1,500-ton reactor started in Klaipėda early on August 6
and 10-meter-high Italian-made reactor will be installed in a deep crude conversion unit
It is the largest investment project in Lithuania in Orlen’s history
and it is expected to be completed by the end of 2024
The Mažeikiai oil refinery in northwestern Lithuania was launched in 1980 and needs to be modernised
The expansion would also “increase the profitability of the refinery”
enabling its earnings to grow by 68 million euros annually
as well as “strengthening the energy security of the region”
The four-year project will be overseen by Orlen’s Lithuanian branch Orlen Lietuva and will be worth 641 million euros
Read more: Polish Orlen’s success ‘precondition’ for good relations with Warsaw – Lithuanian president
This is “a historic day for Orlen Lietuva and the Lithuanian economy,” Notes from Poland quoted Obajtek
as he announced that the modernisation and expansion project had entered its “implementation phase”
It is the “largest investment project carried out in Lithuania,” Orlen’s CEO claimed
it employs 1,500 people directly and 4,500 through services and subcontracting
Around 1,000 private customers will be able to rent up to 5 kW of the wind turbine capacity from the wind farm in Lithuania’s Mažeikiai region to cover their electricity needs
According to Ignitis CEO Darius Maikštėnas
renting a wind turbine could become one of the solutions to withstand the energy crisis
“We are constantly looking for opportunities to engage customers to enter the energy market and start contributing towards its development rather than remaining observers,” he was quoted as saying in the press release
A 4.5 MW wind turbine operating in the wind farm developed by Ignitis Renewables will be available for rent
meaning that anyone will be able to rent a part of the turbine and use its generated electricity
which is expected to be around 36 EUR/kW per month
Ignitis estimates that customers who rent a part of a turbine will start generating electricity in the second half of 2023
Representatives of the Klaipėda District Municipality told LRT.lt that the Christmas tree in Gargždai broke at a height of about one metre above its stand
According to the municipality representatives
the tree is expected to be lifted and the damage assessed in the afternoon when the wind is expected to die down
It will be assessed whether it is still possible to restore the Christmas tree in Gargždai
the contractors who decorated it will be asked to install a new tree with a frame
Šilalė Mayor Tadas Bartkus also informed that the town’s Christmas tree had fallen due to strong winds
“Christmas trees are falling in western Lithuania
Our town’s Christmas tree could not withstand the strong wind
The restoration work will start as soon as the weather conditions allow,” the mayor wrote on Facebook on Monday morning
Residents also reported fallen Christmas trees in Raseiniai
The Christmas tree also fell in Alytus in southern Lithuania
Alytus Mayor Nerijus Cesiulis shared a video on Facebook
gust winds reached the speeds of 31 m/s on Monday morning
There is one ship waiting to sail off and three waiting to enter the port
firefighters in Lithuania have received around 100 reports of fallen trees blocking roads
At least 32,000 people are also reported to be without electricity due to strong winds
covered in 12 metres of lights was unveiled in Anykščiai
Christmas mail can be found inside the Christmas tree in Marijampolė
The Visaginas Christmas tree is unique – it grows in Santarvės square where it was decorated
Kretinga’s silver Christmas tree is covered in 20,000 white lights
The Christmas tree in Naujoji Akmenė was unveiled during a light show
The Joniškis Christmas tree is growing next to the town’s Cultural Centre
Ten smaller trees hold the shroud of the main Christmas tree in Ignalina
The Gargždai Christmas tree is covered in more than 8,000 LED lights
The Mažeikiai Christmas tree is decorated with a shroud of golden lights
Druskininkai unveiled a Christmas tree decorated with a golden crown
Alytus has decided to go for a more modest Christmas tree to emphasise “community and not decorations”
The Panevėžys Christmas tree features huge decorations
The Christmas tree in Palanga is one of the most innovative this year
The main Christmas tree is accompanied by a 25-metre-long Christmas train
may have been shipped from the Polish Baltic port Gdansk to Klaipėda in June by the tanker Mendeleev Prospect which sails under the Liberian flag
The shipment was then allegedly loaded directly into Lietuvos Geležinkeliai (Lithuanian Railways) tank cars by the company Klaipėdos Nafta (Klaipėda Oil) and transported to Orlen's refinery in Mažeikiai
BNS reports that Mendeleev Prospect was the only crude oil tanker to have arrived in Klaipėda throughout June
Klaipėdos Nafta and Lietuvos Geležinkeliai have all refused to comment what the shipment was intended for and what kind of oil it contained
Reuters reported in late June that Mendeleev Prospect was loaded with contaminated oil in Russia's Lust-Uga port on the Gulf of Finland
Organic chloride is designed to boost output
Buyers of the contaminated oil have been struggling to find end-users
Mendeleev Prospect remained moored near Gdanks harbour since April 27
PHOTO: Susisiekimo ministerija The rebuilding of a 19-km railway section between Lithuania's Mazeikiai and Renge, in Latvia, that was dismantled over a decade ago, has been completed, Lietuvos Gelezinkeliai (Lithuanian Railways)
the state-owned Lithuanian railway company
with the traffic of freight trains due to be resumed early next year
The trial run has already been done
The rebuilding has cost 9.4 million euros and has been carried out by Vitras-S
a railway construction and repairs company owned by Estonia's railway services group Skinest Rail
"The mistake done in the past has finally been fixed and a railway has once again connected Mazeikiai in Vilnius with Renge in Latvia
The 19-km section is more important for us than just 19 km of a railway line
It’s a foundation of strong relations and business development for us and our partner," Mantas Bartuska
the Mazeikiai-based oil refiner owned by Polish oil group Orlen
will now be able to take a shorter path to carry its product
they have been carried from Latvia via Siauliai and Joniskis
and the Lithuanian state budget," Daniel Obajtek
The track has been rebuilt in line with LG's commitment to the European Commission
which in late 2017 imposed a fine of almost 28 million euros on the state railway company for hindering competition in the rail freight market
the railway line was in the past used by the Mazeikiai-based oil refinery Orlen Lietuva
"The published recordings of the conversations between the former head of the Foreign Ministry, Radoslaw Sikorski, and former chairman of PKN Orlen, Jacek Krawiec, do not reflect the position of the current Polish administration towards Lithuania," Krzysztof Szczerski
secretary of state at the Polish President's Office
said in a comment published by the Polish Embassy in Vilnius
The official of the Polish President's Office also said he would come to Vilnius at the end of August
"I will attend the anniversary of the signing of the Molotov-Ribbentrop pact in Vilnius as a representative of the Polish President's Office
Political consultations will be held on the occasion at the Lithuanian President's Office," Szczerski said
Poland's tvp.info news portal Monday published a fragment of a secret recording of a conversation between Poland's former foreign minister
which showed that Poland was seriously considering selling the Mažeikiai oil refinery in Lithuania
and in later discussions of possible closure Sikorski urged Krawiec "to teach Lithuanians a lesson."
so that they don't think that s***ting on Poland won't cost anything," Sikorski said
The ex-minister shared the quote on his Twitter feed
The date of the conversation is not specified
earlier reports suggest that Sikorski's conversations were secretly recorded during private meetings in Warsaw restaurants in 2013 and 2014
Orlen petrol station PHOTO: DELFI / Mindaugas Ažušilis Polish Prime Minister Mateusz Morawiecki, currently on a visit to Lithuania, has pledged that Polish oil giant Orlen will expand its operations in Lithuania
After inspecting the Orlen-owned Orlen Lietuva oil refiner in Mazeikiai
refrained from providing details on the plans yet but assured that the plans are expansion-oriented
including further investment into the Lithuanian refiner
they are aimed at building new capacity for the refinery as well," the Polish prime minister told BNS Lithuania in Lithuania's western resort town of Palanga
"As far as specific investment is concerned
I can not complement this information with some more specifics
but I am absolutely certain that there are plans for further investments in Mazeikiai," he added
the Lithuanian government and Orlen signed a declaration on the Polish company's investment into the modernization and infrastructure of the Lithuanian refiner
Orlen Lietuva also operates the Butinge terminal, Birzai oil pipeline and a network of service stations. Morawiecki said that disputes, resolved in recent years, regarding Orlen Lietuva's rail freight transportation and the Renge railway section have improved Lithuanian-Polish relations
Lithuania's state-run railway company Lietuvos Gelezinkeliai (Lithuanian Railways) and Orlen signed a contract on rail freight tariffs last summer
Lithuania has also committed to rebuilding the Renge railway from Mazeikiai to the Latvian border
Orlen Lietuva used the 19-km Renge railway to transport its products to Latvia and has been forced to take other longer routes after it was dismantled
"I am very pleased to have this whole dispute closed by now, which is an indication of improving relationship between Poland and Lithuania as well," the Polish prime minister said
"I would like to emphasize that Polish-Lithuanian relations are top-notch