Spaudos centras
Spaudos centras
How is ORLEN Lietuva, the only refinery in the Baltic States, adapting to global changes in the world oil market? Was it difficult to withdraw from the Russian crude? Does the company introduce greener technologies at its facilities? What is done to cut harmful emissions into the atmosphere? And doesn’t hazardous waste end up in the soil and rivers? We brought these questions to Mr. Vilius Šemeta, Director of Technology at the ORLEN Lietuva refinery.
– As we begin our interview, could you please introduce your refinery to a wide audience. What products does it make from crude oil?
– Major petroleum products include polypropylene, liquefied petroleum gas (LPG), 95 and 98 octane petrol, Jet A-1 (aircraft fuel – Ed.), diesel, marine diesel, fuel oil, bitumen, granulated sulphur.
– The refinery’s overhaul is now complete. Please elaborate on the changes and the improvements in terms of technology.
– The largest project implemented during the overhaul involved catalytic cracking unit revamping. This unit’s worn-out equipment was either replaced or repaired, ensuring the robustness and continuity of its operation until the next overhaul. Other noteworthy upgrade projects include the improvement of the propane-propylene decomposition fraction’s control unit to help optimise propylene yield; enhanced heat exchange node of the diesel/kerosene hydrotreatment unit, as well as cleaning of the atmospheric rectification convector heater. These implemented projects now ensure fuel savings and CO2 emission cuts.
In addition, we would note the new flare at the liquefied natural gas (LNG) facility, whose pilot burners will also consume less fuel and emit less CO2.
– Amid the current new crisis, the matter of energy independence has become one of the key challenges for many countries. How are you coping with the issue?
– The AB ORLEN Lietuva-operated terminal in Būtingė provides crude oil imports opportunities, since the supplies via the Druzhba oil pipeline have ceased since mid-2006. Natural gas makes up an insignificant part in our energy mix; it is used for environmental purposes, to save money, as well as to regulate fuel grid pressure, so a spike in gas quotes or abandoning it will not cause us any major problems.
The dependence remains with respect to the stability of electricity supply to the Baltic countries in the event of disconnection from the BRELL energy ring. In this situation, we analyse technically and economically feasible scenarios to ensure stable and robust operation of the refinery. Meeting 100% of its energy demand with the electricity generated from the in-house power plant—should that prove economically beneficial—is also an option.
– How are the preparations for the industrial transformation proclaimed by the European Commission?
– AB ORLEN Lietuva has announced the expansion of the refining conversion project, aiming to reduce the yield of dark petroleum products (fuel oil) and increase that of light ones (petrol, diesel). Renewable energy projects are at various evaluation stages; the same goes for the expansion of projects for further value chains, looking to diversify the current product mix.
– In the long term, the EU’s fight against climate change due to CO2 emissions may involve banning the production of cars with internal combustion engines. What is the refinery’s response to such a socio-political request?
– The company is exploring the possibility to further ramp up the production of propylene, a petrochemical raw material. Since the PKN ORLEN Group owns multiple refineries, it is looking for the raw materials to boost petrochemical production, thus reducing the output of fuels.
– Please share the plans for petroleum products: some will “win” and some will “lose”?
– The aforementioned project will ensure better yield of high-value products from less crude oil—that is, the conversion ratio (a value denoting the percentage share of the crude refined versus its total volume that went into refining – Ed.) will go up.
– Maybe you are planning to start making biodiesel?
– Yes, the company is exploring such a possibility—both in the area of renewable diesel and in jet fuel from renewable sources.
– How does the company adapt to the requirements that Lithuania in particular and the EU in general prescribe within the Green Deal agenda?
– Adaptation has only just begun; there is still no clarity about future requirements at both the EU and Lithuanian level. We are waiting for the final targets to select a particular Green Deal-related strategy covering the decarbonisation of the refinery’s operations.
– As you yourself mentioned above, the issues of the environment and climate change are among the key ones for European states. In this regard, the spotlight is on major industrial enterprises. ORLEN Lietuva does have an inherent problem—that of waste. Please elaborate on the types of waste generated during oil refining? How does the refinery use or dispose of them?
– The typical industry-specific waste for our enterprise includes oil sludge, various emulsions, soils and other sediments with absorbed petroleum product particles. Part of this hazardous waste is removed in-house—by centrifugation at the unit cleaning workshop with further reuse of the collected petroleum products. The soil that has absorbed petroleum products is regenerated by biodegradation processes. During the [refinery] repairs or annual shutdowns, the main waste stream comprises catalysts, ash, coke and other waste types that result out of mechanical work (lining, sandblasting waste, scrap metal, construction debris). These are transferred to third-party collectors; decisions on their further use are based on the assessment of waste composition and other features. For instance, some used catalysts still contain extractable metals and their compounds. Waste with a suitable energy value is used for energy generation; the remainder is disposed of in landfills.
– As far as I know, the Mažeikiai refinery used to have no oil storage depot, so their supplies were continuous. Please tell us how things are today.
– A few years ago, the sixth crude storage tank (~50,000 m3) was built at the Būtingė terminal; along with the tank park available at the Mažeikiai refinery, the latter now has sufficient storage volume to secure its continuous operation. During the winter period—which is also the one with the highest wind speeds—we store more oil to ensure enough raw material to match the refinery’s planned throughput on days when oil transhipment becomes impossible. The entire chain of supply, refining and shipment of petroleum products is constantly analysed. And action is taken: adjustments are made to ensure the stability of refining and the state reserve.
– Lithuania has strong neighbours who are active in the refining industry, too. How does your facility compete with Finnish NESTE and Polish LOTOS and PERN refineries?
– After several years of protracted process, the merger of LOTOS refinery into the PKN ORLEN Group is now complete. Finnish NESTE turned to the “biorefinery” path much earlier and is currently the leader in hydrotreated vegetable oil (HVO) production. It is not about to give up its share in sustainable aviation fuel (SAF) output to anyone. ORLEN Lietuva has advantages because it operates in the local market. We are part of the large and diversified PKN ORLEN Group, so various synergies boost our competitive edge. It is further strengthened due to refinery’s flexibility in terms of production and logistics. Also, the shareholder is willing to invest in a new residue conversion unit, which will raise the refinery’s complexity index significantly, bringing it closer to the world’s top counterparts and enhancing its financials.
This complementary residue reduction technology will enable ORLEN Lietuva to significantly improve its performance, remain extremely competitive, and secure the future of its existing business. Additional revenues from the new conversion unit will go toward renewable energy development, environmental impact mitigation projects, production of hydrogen with reduced carbon footprint, and further decarbonisation to attain the ORLEN 2030 strategic goals.
– ORLEN Lietuva has been buying Russian oil for years. The plant was designed and adapted to refine Russian grades. How did the company manage to reorient itself so quickly and start working with crudes from other countries?
– This process did take time. We have been investing for years to meet the demands of the market. These investments during live production processes helped test a variety of oil grades. In line with the parent company’s strategy to diversify crude supplies, several dozen alternative grades have been refined since 2014. We developed an even broader crude slate to enable the refining of specific grades, so the share of alternative grades in the total raw materials mix went up.
Denis Kishinevsky