During his visit to Lithuania, Orlen's president, Ireneusz Fąfara, presented the company's new development strategy, which assumes, among other things, the expansion of the refinery in Mažeikiai. – Lithuania is a strategic market for us, and the refinery in Mažeikiai requires investment commitment, which also requires support from the Lithuanian side – said the head of the company.
On Thursday, Orlen's president Ireneusz Fąfara met with the head of the Lithuanian government Gintautas Paluckas, deputy energy minister Arnoldas Pikzirnis and the chairman of the Lithuanian Sejm and former prime minister Saulius Skvernelis.
During the meeting, Fąfara presented Orlen's new strategy, the implementation of which translates into the energy security of Poland and the region. – This is the largest investment program that will guarantee available, stable and cheap energy – he noted.
– Lithuania is a strategic market for us, a the refinery in Mažeikiai requires investment commitmentwhich also requires support from the Lithuanian side. After the meetings, I am full of optimism and I am glad that the issues we presented were treated with great attention and kindness – added the president of Orlen.
Refinery in MažeikiaiPAP/Radek Pietruszka
“We see the possibility of renewing contracts”
– We see the possibility of renewing our contracts with the group (Orlen – ed.) and finding solutions that satisfy both parties – said Deputy Energy Minister Arnoldas Pikżirnis in a conversation with journalists. He added that “there is great mutual understanding, (…) we see the importance of Orlen for Lithuania and the benefits it brings to the Lithuanian economy and energy sector.”
Pikżirnis recalled that the previous government's obligations, including financial ones, were related to both the modernization of the refinery in Mažeikiai and the company's transition to climate neutrality. He expressed his belief that appropriate “solutions will be found very quickly and presented to the public in the near future.”
According to Prime Minister Gintautas Paluckas' energy adviser, Gabriel Gorbacevski, “no specific decisions were made” during Thursday's meeting. – We talked about how to keep the state's promises and what measures should be taken, he said.
Return to investment in Mažeikiai
Orlen announced an investment worth EUR 641 million in the construction of an in-depth oil processing installation in Mažeikiai in autumn 2021. It was intended to be the largest investment program in Lithuania, which was to increase the profitability of the refinery. The investment was supposed to be completed in 2024, but according to Orlen, it encountered problems and as a result, in the fall of 2024, the company made a write-off of PLN 2.4 billion.
As the company recalled, in accordance with the memorandum signed with the Lithuanian government, the latter agreed to be involved in the achievement, which, however – as Orlen informed PAP – was not enforced by the previous management.
– The current Lithuanian government intends to fulfill what was written in the memorandum with Orlen, said Gabriel Gorbacevski, adviser to the Lithuanian Prime Minister on energy, noting that the search for ways to fulfill these obligations is ongoing.
Main photo source: PAP/Radek Pietruszka