Mazeikiu Nafta and Petrochemical Strategy in Lithuania

PCH reached an agreement with Yukos shareholders to acquire the Mazeikiu Nafta refinery with the intention of creating an integrated petrochemical company from crude oil to PET preforms.

It was intended:

To increase the capacity of the Mazeikiu Oil Refinery for deep oil refining from an existing 8 million tons to 12-15 million tons per year based on the fuel and petrochemical option.
To construct a terephthalic acid production with a capacity of 600 kta from own feedstock (400 kta of paraxylene) at the production site of the Mazeikiu Oil Refinery.

To increase the production of PET in Lithuania up to 600-700 kta with increasing production of preforms.
To create a pyrolysis unit and production of glycols and polypropylene within the program at Mazeikiu Nafta.

The proposal was presented to the Prime Minister of Lithuania and the acquisition of the refinery was approved by the country’s leadership, taking into account the guarantee of crude oil supplies from Russia.

The proposal was not however implemented due to Russia’s refusal to supply oil to Lithuania.