Petrofac secures $640m contract for expansion of Lithuanian refinery
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Petrofac secures $640m contract for expansion of Lithuanian refinery

28 Oct 2021 (Last Updated October 28th, 2021 15:44)

Petrofac will support the refinery’s modernisation, expansion programme, and environmental upgrade work.

Petrofac secures $640m contract for expansion of Lithuanian refinery
The Mažeikiai refinery is located in northwestern Lithuania. Credit: ORLEN Lietuva.

Petrofac has received a $640m contract from PC ORLEN Lietuva, a unit of Polish oil refiner PKN Orlen, to support the expansion of the Mažeikiai Refinery in Lithuania.

Petrofac will be responsible for engineering, procurement, construction, start-up and commissioning services for the expansion programme at the refinery.

It will support a comprehensive modernisation, expansion programme, and environmental upgrade at the refinery, which is said to be important to Poland and Lithuania.

The scope of work includes greenfield engineering, procurement, construction development and some brownfield modifications. It will also include front-end engineering design of relevant utilities and offsites.

As part of the contract, 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.

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, more environmentally friendly fuels.

“ORLEN Lietuva is a new customer for us, and we look forward to developing our relationship as we deliver locally, to the highest global standards, on a project that is an important part of Lithuania’s energy infrastructure.”

Situated in northwestern Lithuania, the Mažeikiai refinery has a designed capacity of 10Mtpa of crude oil.