Construction of the xylene separation unit at Grupa LOTOS’ Gdańsk refinery is nearing completion. Xylenes are used to produce polyester, which in turn is a feedstock for production of plastic and textile products. They are in high demand due to the dynamic growth of plastic packaging production globally. Sales of xylene are more profitable than sales of reformate used to produce xylenes.  

The launch of the new unit will mark the commencement of Grupa LOTOS’s expansion in the petrochemical industry. Production of xylene, which offers higher margins than reformate, is Grupa LOTOS’s response to gasoline surplus in Europe. It is also Grupa LOTOS’s emergence as feedstock supplier on the dynamically developing market of polyester manufacturers.

- By launching xylene production we want to address the needs of our market environment. Attractive margins on sales of xylene will also generate higher income for the Company - says Marek Sokołowski, Vice-President of Grupa LOTOS. He adds: - Production flexibility is our competitive advantage gained thanks to a number of completed investments. As we see a lower demand for gasoline, we reduce the production of naphtha fractions – i.e. reformate, which will be processed into xylene. Additionally, there is already a customer for the product –  a Japanese-German company, Mitsubishi International GmbH.
Grupa LOTOS has executed an over PLN 800m contract for sale of xylene over a period of three and a half years. Technological start-up of the new unit is scheduled for the end of April, followed by functional tests. As expected, the first batch of xylene will be produced for Mitsubishi at the end of June.

The unit’s annual production capacity will be 120 thousand tonnes of xylene. It will process 65 tonnes of reformate per hour.
Grupa LOTOS has been consistently adjusting its production processes to the EU environmental requirements. The production of xylene will significantly reduce the share of aromatic hydrocarbons in motor gasoline components, which is in line with the European Union requirement to gradually reduce the content of aromatics in gasoline.

Xylene serves as feedstock for the production of polyesters, of which plastics are manufactured, including popular PET packaging and textile products. It is also used in the production of solvents for the paint and varnish industry. The world production of PET packaging is growing. In 2011, it was 21.3m tonnes, while in two years’ time it is expected to reach 24m tonnes of packaging. In Eastern Europe alone, the production of PET increased by 8% in 2011. In Poland, the consumption of xylene rises on average by 10% a year.

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