PKN ORLEN supplies crude oil to the Płock refinery and to three other ORLEN Group refineries, in Litvínov and Kralupy in the Czech Republic, and in Lithuania’s Mažeikiai.
In 2020, crude oil was supplied to Poland and Lithuania without any disruption. In the Czech Republic, the volume of crude oil purchased in May and June was lower due to an extended shutdown of the refinery and limited storage capacities.
In 2020, two long-term contracts for oil supply via pipeline to the Płock refinery (with Rosnieft Oil Company and Tatneft Europe AG) and one long-term contract for oil supply by sea (with Saudi Arabian Oil Company) were in force. These contracts covered almost 83% of crude oil supplies to PKN ORLEN.
The feedstock for all refineries of the ORLEN Group was procured from oil producers and other companies operating on the international oil market. The crude oil supplied to Płock came primarily from Russia and Saudi Arabia, but was also imported from Kazakhstan, Nigeria and Norway. The refineries in the Czech Republic received the feedstock from Russia, Algeria, Saudi Arabia, Azerbaijan, Kazakhstan, Nigeria, Norway and the United States. The Mažeikiai refinery was primarily supplied with Russian oil, with additional deliveries from Saudi Arabia, Kazakhstan and the United Kingdom.
In 2020, the share of Rosneft Oil Company in the crude supplies exceeded 10% of the ORLEN Group’s total revenue.
Natural gas is used by the Group in the production of heat, electricity, fuels and fertilizers. In Poland, the ORLEN Group’s combined potential for natural gas consumption exceeds 3bcm per year. Natural gas is used by the Group mainly at the following locations:
- PKN ORLEN's production plant in Płock: for refining, petrochemical, electricity and heat production.
- ANWIL’s production plant in Włocławek: for fertilizer production.
- ORLEN POŁUDNIE's production plants in Trzebinia and Jedlicze: for refining, electricity and heat production.
- CCGT unit in Płock: for electricity and heat production.
- CCGT unit in Włocławek: for electricity and heat production.
- Unipetrol Group’s production plants and the production plant in Neratovice (Spolana): for refining, petrochemical, electricity, heat and fertilizer production.
- Production plant in Mažeikiai: for electricity and heat production.
Most deliveries of natural gas to the ORLEN Group companies in Poland are made under a contract signed in 2016 by PKN ORLEN and PGNiG. Under annexes signed in 2020, the contract will remain in force until 2027 (with an option to extend it for another 12 months). Purchases are also made under supplementary contracts with major gas suppliers in Poland and Europe. Gas is also purchased on the Polish Power Exchange. The ORLEN Group takes steps to ensure stability of supplies and to lower gas procurement costs through such measures as diversification of supply sources, centralisation of gas trading functions and further development of the trading expertise. The current portfolio of gas contracts allows the Group to optimise gas procurement costs by selecting the underlying gas indices and delivery points.
PKN ORLEN has gas transmission contracts with both domestic and foreign operators, ensuring full support in natural gas logistics for the production plant in Płock, CCGT Włocławek, and CCGT Płock. PKN ORLEN has also been developing natural gas sales on both retail and wholesale markets.While the ORLEN Group is engaged in a number of exploration and production projects to secure its own sources of natural gas.
In 2020, the value of deliveries by none of the suppliers of natural gas to the ORLEN Group accounted for more than 10% of the Group’s total revenue.
Hard coal is the main fuel used by the Energa Group to produce electricity and heat.
In 2020, the Energa Group’s generating units used 826 thousand tonnes of hard coal and 147 thousand tonnes of biomass (2019: 1,059 thousand tonnes and 148 thousand tonnes, respectively). The key sources of hard coal supplies for the Energa Group were Polska Grupa Górnicza, Lubelski Węgiel Bogdanka and Jastrzębska Spółka Węglowa.