Orlen acquires control of key petrochemical unit in deal with Synthos

ORLEN aims to strengthen its petrochemical value chain and ensure long-term operational transparency

ORLEN has acquired full ownership of S54 from Synthos in a deal valued at approximately PLN 692 million. This acquisition gives ORLEN control over a new butadiene extraction unit currently under development, which will be integrated into the Group’s main production plant in Płock.

The transaction includes a package of accompanying agreements designed to stabilize the existing partnership between the two companies and establish a framework for future cooperation. By securing this unit, ORLEN aims to strengthen its petrochemical value chain and ensure long-term operational transparency.

 “We’ve been systematically addressing legacy issues and reconfiguring projects that failed to adequately safeguard ORLEN’s interests. Our efforts also covered the Olefins III project and the associated investment in a new butadiene unit. The deal we’ve agreed with Synthos brings this chapter to a close. We’re regaining full control over the unit, which is at the very core of the entire project. To achieve this, we developed a solution that meets the expectations of both parties and lays a solid foundation for our further partnership. We’re restoring proper business relations. As a result, the New Chemicals project can move forward in line with our strategic direction,” says Ireneusz Fąfara, CEO and President of the Management Board of ORLEN.

Under the agreement, ORLEN will take full control of S54, which is constructing the butadiene extraction unit at the Production Plant in Płock. The new unit will ultimately become integrated into the site’s petrochemical value chain. It will process the entire C4 output and deliver raffinate for use in downstream petrochemical processes.

At the same time, the parties signed a series of agreements and amendments to existing contracts that comprehensively govern their current legal and commercial relations. These arrangements resulted from a review of the company’s commercial commitments and efforts to rectify earlier investment decisions.

The agreements also cover cooperation between ORLEN and Synthos in the Czech Republic, shortening the duration of the Butadien Kralupy JV as well as the C4, raffinate and butadiene contracts from 2049 to 2038. Additionally, they secure a further two years of ethylene and benzene offtake in the Czech market.