LOTOS Tank, a subsidiary of Grupa LOTOS S.A. opened state-of-the-art fuel terminal at Gdansk airport. Within that project LOTOS built new installations and storage tanks for the highest quality aviation fuel coming to the airport directly from Gdansk refinery.

The terminal was built in accordance with standards of international organization for airport operations gathering, among others, world fuel producers, airports and airlines. It consists of i.a. 4 ground two-shell tanks designed for storage of aircraft fuel JET A-1. Total capacity of storage tanks reaches 400 m3. Each tank is provided with 3 technological scuttles making possible swift access to the interior space due to control and up-grade procedures. Due to special requirements concerning the quality of aircraft fuel – the installations has been equipped with drainage system including drainage pump. Fuel delivery-reception point enables collision-free unloading and loading of airport tank trucks. Fuel during unloading from tank truck shall be  collected by means of two collecting lines equipped with Camlock type connection, which enables simultaneous unloading of both tank truck chambers and makes the whole operation much quicker. Unloading pump utilization reaches max. 1300 dm3/min.

¬Fuel terminal personnel consist of highly skilled employees, that passed successfully all required examinations and possess relevant certificates.  

– Project implemented today constitutes an essential part of our commercial strategy aimed at increasing our shares in the domestic market of aviation fuels – Pawel Olechnowicz, Grupa LOTOS S.A. CEO points out. – I hope that active competition among suppliers of those fuels will bring additional benefits to airports and airlines as well as to passengers alone.

On 20 March 2007 Management Boards of Grupa LOTOS S.A. and Gdansk Lech Walesa Airport signed a letter of intent concerning entering into co-operation within the scope of supplying fuel, lubricants and other materials to carriers operating at Gdansk airport. The letter of intent was an important step towards creation of competitive market of aviation fuel supplies in Poland that will be first of all of benefit to economy and to inhabitants of the Pomeranian province.

Arm in arm with Norwegians

In late 2008 LOTOS and StatoilHydro made a guarantee agreement covering, among others, joint actions in the aviation fuel market. Both companies made it their aim to dynamically develop their mutual relations within the scope of operations in the area of the Polish airports. Concrete effects of the fulfilment of that agreement are represented today by fuel terminal at Gdansk airport – CEO Olechnowicz adds.

Fuel terminal opening was related to necessity of severe technical as well as HSE requirements compliance. – We’ve worked upon that issue for several months together with our partner Statoil Aviation – emphasizes Dariusz Falkiewicz, LOTOS Tank CEO. – Emerging at Gdansk airport is not only a sign of growing competitiveness but what’s mostly important our solicitude for safety and flights continuity. I also agree with airlines representatives opinion that increase in competitiveness leads to greater number of operated flights. We all stand for it – passengers, Gdansk airport employees, Pomeranian province and Grupa LOTOS.         

– Poland is in general a very important market for Statoil and Statoil has been present in the retail market in Poland for close to 20 years. During these years Statoil has been exploring possibilities to enter also the high growth aviation market. We are therefore very pleased that we have concluded this agreement with Lotos to develop these opportunities together, starting with Gdansk. Statoil Aviation's main goals are to improve the service and the price level for the customers at Polish airports and we consider our joint approach in Gdansk as a first step into this direction. Lotos strength and know how on the supply side with the Gdansk refinery, and Statoil's strength and experience within operation and marketing of jet fuel to airlines should be perfect fit for this market, the region and the airlines flying here – says Torgrim Kjólberg, Vice President Statoil Aviation.
 
Promising market

– Poland, as one of few countries has a production surplus of aviation fuel – comments CEO Falkiewicz. – JET A-1 deficit on the European market reaches 15,6 million tons currently and it’s going to soar, that means as a producer we are in a really good situation.

In 2008 aeroplanes owned by Polish airlines transported over 5 million passengers and 46 thousand of cargoes. Comparing to 2007 the number of passengers declined by more than 14%, but on the other hand cargoes tonnage rose at the same time by 4%. Due to analysts opinion further signs of world economy recovery should result edging up in airlines transportation and gives positive impulse to the whole branch.

Fuel price is one of the fundamental factors influencing the civil aviation development. So far airports had only one fuel supplier but now it is to be changed. As a result of decision of the European Council, each airport rendering services to more than 2 million passengers a year will be forced to have an alternative fuel supplier. Introduction of a consecutive fuel supplier to the airport can cause more planes to fuel just in Poland due to increasing competitiveness. – For several airports there’s still a gap to exceed rate of 2 million passengers annually, but Gdansk airport is one of those which possess alternative fuel supplier – emphasizes Wojciech Okine, Commodity Director at LOTOS Tank. – You can say that we start-up from our homeland airport. I’m concerned that in short-time, perhaps in some other ways, we are going to be present at other Polish airports as well.       

In pursuance of earlier announcements, thanks to implementation of Program 10+, LOTOS Tank wants to substantially strengthen its position in the aviation fuel market. When the project is ready in 2010, Gdansk refinery will be able to produce even million tons of aviation fuels a year. For comparison, last year the refinery produced half million tons of that fuel. Additional volume of aviation fuel will be produced next year by MHC system (mild hydrockraking) being installed just within Program 10+.

In the refinery of Grupa LOTOS S. A. in Gdansk, aviation fuel is produced by two Merox units able to produce ca. 60 tons of fuel over about an hour. That amount is sufficient for Boeing 767 to fly from Warsaw to Chicago. In 2008 some 80% of aviation fuels were exported, among others, to Sweden, Denmark, Norway, Finland and the Czech Rep.. Aviation fuels from Gdansk refinery were also delivered to a number of domestic airports.

Grupa LOTOS is a capital group including, besides Grupa LOTOS S.A. (parent company), LOTOS Czechowice, LOTOS Jasło and Petrobaltic (E&P company focused on Polish Continental Shelf) also several subsidiaries bearing LOTOS brand. At the end of March 2009 the employment in the capital group reached 4915 people. Consolidated sale revenues of LOTOS in 2008 exceeded PLN 16 million and was higher by 24% than that in 2007. At present throughput capacity of Gdansk refinery amounts to 6 million tons of oil a year. In the 1Q2009 the concern’s share in the fuel market generally grew to 28.3%. This is by 3.8% more as compared with similar period of 2008. Through LOTOS Norge, a subsidiary company the concern is also present on the Norwegian Continental Shelf where it conducts works aimed at crude oil exploration and production. Within program 10+ the refinery of Grupa LOTOS S.A. in Gdansk will increase its throughput capacity to 10.5 million tons annually. In addition, according to the assumptions of strategy till 2012, the company plans to reach the growth of its share in the national fuel market up to 30%.

StatoilHydro is an integrated technology-based international energy company primarily focused on upstream oil and gas operations. Headquartered in Norway have more than 30 years of experience from the Norwegian continental shelf, pioneering complex offshore projects under the toughest conditions.
 
Facts about StatoilHydro:

• Established on 1 October 2007 following the merger between Statoil and Hydro’s oil and gas activities
• About 29,500 employees in 40 countries
• The world's largest operator in waters more than 100 metres deep
• Operator for 39 producing oil and gas fields
• Market capitalisation worth more than NOK 500 billion (NOK 528 billion at a share price of NOK 170)
• Production averages more than 1.7 million barrels of oil equivalent per day
• Proven reserves: More than six billion barrels of oil equivalent
• World leader in the use of deepwater technology
• World leader for carbon capture and storage
• One of the world's largest crude oil and gas suppliers
• Biggest seller of oil products in Scandinavia
• Listed on the Oslo Stock Exchange (ticker: STL) and New York Stock Exchange (ticker: STO)

Marcin Zachowicz, Spokesman of Grupa LOTOS S.A., ul. Elbląska 135, 80-718 Gdansk, tel. +48 58 308 75 70, +48 505 050 454, e-mail: marcin.zachowicz@grupalotos.pl