Poland’s Orlen scales back olefins project, delays output

According to media reports, Poland’s Orlen announced it is scaling back its olefins petrochemical project, delaying production until at least 2030 and aiming to reduce costs by up to one-third. The project, which began in 2021, saw costs rise to six times the original estimate. Originally estimated at 8.3 billion zlotys ($2 billion), the project has grown into a 51 billion zloty ($12.6 billion) "trap," according to Orlen.

The company plans to use existing infrastructure to develop a new ethylene unit, which is set to begin operations no earlier than 2030. The updated project is expected to cost an additional 21.4 billion zlotys ($5.2 billion), including financing, and is projected to generate annual EBITDA of 550 million to 800 million zlotys ($135 million to $197 million).

The revised plan, called "New Chemistry," now sets the total cost at 34 billion zlotys ($8.3 billion), down from the previous estimate of 45-51 billion zlotys ($11 billion to $12.6 billion). The company will unveil its new strategy in January, with the updated project schedule and budget to be finalized by September 2025.