PKN Orlen Hires Fluor for Olefins Project
Poland’s PKN Orlen has signed a contract for technical consultancy and project management contractor (PMC+) services on its planned olefin expansion at Plock with US-based engineering and construction group Fluor.
The services include end-to-end project management across several functions, including managing timescales, costs, contractors and risk, to technical support, supervision of technical design standards and managing procurement and execution.
A team comprised of PKN Orlen employees and a PMC+ consultant will work together on the project. Orlen said the collaborative approach will help it to gain know-how in managing integrated capital projects along with developing and enhancing its in-house capabilities to benefit future ventures.
“Our contract with Fluor will fully integrate the project management, offering potential synergies and facilitating knowledge flows between PKN Orlen and the contractor,” said Zbigniew Leszczyński, member of PKN Orlen’s management board, development.
In June last year, the Polish group announced a petrochemical investment program of up to 8.3 billion zloty, its largest on record. The program will add new capacity and expand existing output of olefins, aromatic derivatives and phenol at Plock and Wloclawek by 2023. Part of the money will be spent on a new R&D center, which will generate a range of proprietary technologies and is expected to open next year.
Daniel Obajtek, president of the PKN Orlen’s management board, commented: “Petrochemicals have enormous potential we are determined to make the most of. Our capital projects to develop the petrochemical area will solidify our position on the European market while providing tangible benefits to the Polish economy, turning it from an importer into a net exporter of petrochemicals.”
The company expects its development program to add some 30% to its existing capacity. It added that projects to expand phenol capacity and build an aromatics derivatives plant are at an advanced stage.