Orlen Lietuva has proposed to include the product pipeline project in a new draft plan, worked out by the Energy Ministry, for the implementation of the National Energy independence Strategy in 2012 through 2016.
Orlen Lietuva Deputy CEO Viktoras Vasilevičius says in a note to the ministry that the company plans to start building the product pipeline in 2014 and to complete it in 2017. Orlen Lietuva estimates that investments in the project would amount to around 110 million US dollars, but is yet to identify a source of financing.
Indrė Milinienė, spokeswoman for Klaipėdos Nafta (Klaipėda Oil), which reloads the crude refinery's oil products into tankers, told BNS that the oil product terminal operator is aware of Orlen Lietuva's intentions, but added the companies are not holding any concrete talks on this issue.
Since the acquisition of the Mažeikiai crude refinery in 2006, PKN Orlen has sought influence in Klaipėdos Nafta. Krystian Pater, the then CEO of Orlen Lietuva, said in 2009 that the company would build a product pipeline between Mažeikiai and Klaipėda, but it wanted long-term guarantees as to influence in Klaipėdos Nafta.
Lithuanian authorities then said that they would not sell shares in Klaipėdos Nafta because the state had to retain operational control of the company.
The Polish group wanted to buy a stake in Klaipėdos Nafta and build a product pipeline from the Mažeikiai refinery to the oil product terminal. Pipeline transportation is cheaper than moving products by rail.
