Polish refiner Grupa LOTOS S.A. operates a 6-million-tonne-per-annum (120,482-b/d) oil refinery in the coastal city of Gdansk. The refinery produces gasoline, diesel (ultra low-sulfur diesel [ULSD]), light heating oil, jet fuel, bunker oils, liquefied petroleum gas (LPG), heavy fuel oil (HFO), bitumens, and base oils.

Expansion project

Through its "10+ Programme," Grupa LOTOS seeks to carry out the Polish Government's goal of providing continuity for the country's energy raw material supplies. The government has charged Grupa LOTOS with the task of boosting the Gdansk Refinery's annual throughput by 75% (from 6 million to 10.5 million tonnes). The installation of a new atmospheric and vacuum distillation system (CDU/VDU) at the facility will effect this outcome.

The government also wants the refinery to attain a higher level of petroleum conversion so that it can derive more high-margin products from the crude oil that it processes. To achieve this end, Grupa LOTOS will add the following systems to the refinery: hydrocracking (MHC), hydrodesulfurization (HDS) of diesel oils, and processing heavy vacuum remnants (ROSE).

Finally, a number of auxiliary systems will be added to the Gdansk Refinery through the 10+ Programme. The auxiliary systems include a hydrogen plant (HGU), an amine-sulfur complex (KAS), and storage tanks with a total capacity exceeding 200,000 cubic meters. In order to meet the higher demand for auxiliary utilities, the existing infrastructure will be developed accordingly.

According to Grupa LOTOS, all major contracts for system design, equipment, and contractors associated with the expansion were signed in 2007. In addition to project management, Technip is performing engineering and procurement services for a new 180-ton-per-hour solvent deasphalting unit. Also, the company is providing engineering, procurement, and construction (EPC) services for a 45,000-barrel-per-stream-day mild hydrocracking unit based on Shell Technology. Lurgi S.A. is constructing and delivering installations to the crude distillation unit. ABB has won an EPC contract for a diesel desulfurization (HDS) unit licensed from Chevron Lummus Global. The unit will help Grupa LOTOS to comply with European Union mandates that diesel oil contain less than 10 parts per million of sulfur. Other contractors working on the expansion include KTI, Fluor, Shell, KBR, Kellogg, and Uhde.

The Gdansk Refinery Expansion is expected to support 1,200 to 1,500 jobs during construction. The anticipated completion date is Fourth Quarter 2010.