ORLEN secures full control of a key butadiene unit, resolving legacy issues and strengthening its integrated petrochemical strategy.
Poland’s largest energy and petrochemical group has concluded a landmark transaction that reshapes its petrochemical operations and strengthens its long-term strategic positioning. Under a newly signed agreement with Synthos, ORLEN will acquire complete ownership of S54, the special-purpose company responsible for developing a modern butadiene extraction facility. Once construction is completed, the unit will be fully incorporated into ORLEN’s Production Plant in Plock, reinforcing the company’s control over an extended and integrated petrochemical value chain.
The transaction has an estimated value of approximately PLN 692 million and is accompanied by a comprehensive set of additional agreements. Together, these arrangements are designed to stabilise the legal and commercial framework governing relations between the two companies. Importantly, the deal not only resolves longstanding structural and contractual complexities but also establishes clear, transparent and mutually beneficial terms for future cooperation.
According to Ireneusz Fafara, President and CEO of ORLEN, the agreement marks the conclusion of a difficult chapter in the company’s recent investment history. He noted that ORLEN has been systematically reviewing legacy projects that failed to adequately protect its interests, including those associated with the Olefins expansion and the butadiene unit. By regaining full ownership of the project’s core asset, ORLEN restores decisive operational control and ensures the project aligns with its broader strategic objectives. Fafara emphasised that the solution developed satisfies both parties and creates a solid foundation for renewed cooperation going forward.
Under the terms of the agreement, ORLEN will assume full authority over S54, which is currently building the butadiene extraction installation at the Plock production complex. The unit will process the entire C4 hydrocarbon stream generated at the site and supply raffinate for use in downstream petrochemical applications. This integration is expected to enhance operational efficiency and improve value capture across multiple segments of the petrochemical chain.
In parallel, ORLEN and Synthos signed several new agreements and amendments to existing contracts that comprehensively regulate their ongoing commercial and legal relations. These changes followed a detailed review of prior commitments and were aimed at correcting earlier investment and governance decisions that limited flexibility and increased risk.
The revised framework also reshapes cooperation between the two companies in the Czech Republic. It shortens the duration of the Butadien Kralupy JV, as well as related contracts covering C4 streams, raffinate and butadiene, moving their expiry from 2049 to 2038. In addition, the agreements secure two extra years of ethylene and benzene offtake for the Czech market, supporting supply stability and commercial continuity.
The original collaboration on the butadiene unit began several years ago as part of a broader petrochemical expansion programme in Plock. At that time, the project was separated into an independent entity that remained outside ORLEN’s direct ownership and operational control. However, in December last year, ORLEN’s management decided to discontinue the Olefins III project in its original form and continue development under the New Chemicals initiative. This revised approach reflects updated technological, operational and market assumptions.
The New Chemicals programme focuses on building a next-generation monomer production facility and expanding ORLEN’s sales capacity in ethylene oxide, glycols, styrene and C4 derivatives, with output levels optimised to current and anticipated market demand. The newly signed agreements significantly enhance project security, increase operational flexibility and establish a stable platform for long-term cooperation between ORLEN and Synthos.
