Integrated Annual Report 2020

Calendar of major events

  • On 14 January, agreements related to the expansion and modernisation of the fuel terminal in Piotrków Trybunalski were signed at the registered office of the Grupa LOTOS in Gdańsk. The owner of the facility is LOTOS Terminale, the company within the Group responsible for the storage and distribution of fuels throughout the country. The investment will be carried out by KB Pomorze.
  • In February, LOTOS Kolej received a safety certificate issued by the Czech supervisory authority, Drážní Úřad, valid until 19 October 2024. This will allow for expansion of activities into the Czech Republic.
  • At the end of March, the Grupa LOTOS, LOTOS Paliwa and Remontowa LNG Systems signed an agreement on the construction of a pilot LNG docking station at the LOTOS petrol station in Gdańsk-Osowa.
  • The Petro Giant platform, owned by LOTOS Petrobaltic, started to rebuild the first of seven boreholes in the Baltic B3 deposit. The aim of the measures initiated in March is to increase hydrocarbon extraction from the Polish Baltic Sea economic zone. This is the first task of this largest entity owned by the concern from Gdańsk. The works included reconstruction of a total of seven boreholes: B3-5, B3-6, B3-8, B3-13, B3-14 and B3-15. As a result, safe extraction can continue on the B3 deposit in the Baltic Sea. Extraction productivity and parameters will also improve.
  • The feasibility study for the small-scale LNG terminal project in Gdańsk was completed in May.
  • LOTOS Oil, a company engaged in production and distribution of oils and lubricants, implemented the Together into the future plan in May. The programme responded to the expectations of counterparties and strengthened the market position of LOTOS lubricants in the field of distribution. The programme implemented by LOTOS Oil, forming part of the anti-crisis shield of Prime Minister Mateusz Morawiecki’s government, provided support for many sectors of the Polish economy.
  • In June, the Grupa LOTOS, 3 companies from the Azoty Group, Hyundai Engineering and KIND entered into agreements to finance the petrochemical project “Police Polymers”.
  • The Grupa LOTOS’s fuel will reach the largest island of Norway on the Arctic Sea and will help Polish scientists in their research on climate change. This is the result of winning the tender for the supply of fuel to the Polish Academy of Sciences (PAN). On 4 June, the deck of a vessel headed for Spitsbergen was loaded with 2 tanks of IZ40 diesel fuel, which is well-suited for extreme conditions.
  • The Ministry of Climate commenced works on Poland’s hydrogen strategy until 2030. The Ministry’s representatives announced the main objectives of this document on 7 July 2020 in Warsaw. During the meeting, a letter of intent to establish a partnership for the development of hydrogen economy was also signed with key companies from the energy and transport sectors. The Grupa LOTOS also signed that agreement.
  • The Grupa LOTOS signed a cooperation agreement with PKN ORLEN and the State Treasury. It concerns finalisation of the process of acquisition of shares in the Grupa LOTOS by PKN ORLEN from the State Treasury. The transaction is to result in PKN ORLEN taking over, directly or indirectly, control over the LOTOS Group. The Agreement was signed on 18 August 2020. The signatories confirmed that the completion of the transaction would be conditional upon the remedial measures negotiated with the European Commission. Both companies declared their cooperation to enable these measures to be carried out. In addition, the companies undertook to cooperate with the State Treasury in order to enable an analysis of the scope of the remedies and to develop the scope and structure of the transaction.
  • In August, the project to build a Continuous Emissions Monitoring System (CEMS) was completed. The system helps to analyse the refinery’s operation when processing different types of oil. This makes it clear how production affects the natural environment. CEMS is an assembly of equipment for those involved in technological processes affecting the environment. In addition to the analysis of the refinery’s operation under different conditions, it allows for detection of possible risks, such as process leaks that cause sulphation of fuel gas.
  • LOTOS Lab purchased a modern device for analysing the stability and compatibility of crude oils. The apparatus, with a value of approx. EUR 100 thousand, reached the company at the beginning of September. This is the first equipment of this kind at LOTOS. It will further define the parameters of the processed raw material, which will translate into tangible business benefits.
  • Rzeszów is another city with which the Grupa LOTOS will cooperate in the supply of hydrogen and the related infrastructure for fuel cell vehicles. The letter of intent on this matter was signed on 22 October. Previously (in May 2020), similar cooperation was established with the city of Tczew. At the same time, the concern from Gdańsk signed an agreement with Autosan, which will test hydrogen produced by the LOTOS Group in its buses.
  • The concern was involved in the first socio-educational campaign promoting electromobility in Poland. The initiative of the National Centre for Climate Change and Polish Alternative Fuels Association was launched on 27 October. The aim of the campaign is to foster knowledge and social trust towards zero- and low-emission means of transport.
  • The Grupa LOTOS, PKN Orlen and ENERGA commenced feasibility analyses of implementing a joint investment in a of the combined cycle gas turbine in Gdańsk. The investment would be completed by July 2026. On 2 November 2020, the companies signed a letter of intent on this matter. The purpose of the agreement was to develop the assumptions and conditions for the project involving the construction of the combined cycle gas turbine (CCGT). The companies cooperating on this investment have determined both the legal and technical conditions for the implementation of this project and the terms of its funding.
  • At the beginning of December, the Hydrogen Recovery Hub installation was started up; it will increase the production of high-margin products and reduce CO2 emissions.
  • The Grupa LOTOS launched the Green H2 investment programme to build a large-scale installation for green hydrogen production. This is another phase of a joint initiative commenced in May with Polish Electricity Networks.
  • On 22 December 2020, the Grupa LOTOS produced the first-ever bio-components: bio-propane and diesel fuel bio-components.

Search results