On November 23rd 2012 Grupa LOTOS S.A. signed an agreement with Zakłady Azotowe w Tarnowie-Mościcach (”Azoty Tarnów”) to complete a preliminary feasibility study for two proposed investment projects – a steam cracker and polyethylene production unit, and an aromatics complex. If the feasibility study renders positive results, this will enable the partners to start design work on the selected alternative, thus offering Grupa LOTOS and Azoty Tarnów an opportunity to benefit from the recently-announced programme ”Polish Investments” (Inwestycje Polskie).
  
The purpose of the cooperation struck between the Gdańsk-based company and Azoty Tarnów is to form a consortium that will carry out the feasibility study work comprising an analysis of the technological and economic potential for building the petrochemical and chemical process plant at the premises of Grupa LOTOS and Azoty Tarnów.

The first of the alternatives put under review is a steam cracker. The technology enables production of light olefins: ethylene, propylene and buthylene, which are feedstock in plastics production.  The other alternative is an aromatics plant with supporting infrastructure. The complex of process plant producing aromatics as petrochemical intermediates would potentially comprise several newly-built units interoperable with each other and with Grupa LOTOS' existing infrastructure. The key customers for the products from the new units would be the Azoty Group.

The conclusions of the analyses performed on both alternatives will provide grounds for the Companies to reach, by the end of 2013, a decision concerning the establishment of a special purpose vehicle and joint implementation of the chosen alternative.

- The cooperation agreement with Azoty Tarnów is opening doors to new growth opportunities for Grupa LOTOS.  I hope that the outcome of the preliminary feasibility study will be satisfactory to both parties and will enable us to commence the proper work on the project. Eligibility for the ”Polish Investments” programme would be an additional advantage. Initial estimates suggest that our project would qualify for participation - says Paweł Olechnowicz, President of the LOTOS Management Board.

Under the executed cooperation agreement, Grupa LOTOS and Azoty Tarnów are to select the best possible technology and to work out a business model and key terms for project-related contracts. Based on the results of their work, a preliminary project performance evaluation will be conducted, and the consortium members will select the optimum project location.

- The implementation of one of the alternatives is important, and not only for Poland's economic growth generated by landmark infrastructural ventures. A project of this type may generate between 2 and 3.5 thousand new jobs across industries and contractors. What is more, it may become a growth driver in the region, while the new plant will enhance the utilisation of the port, railways and roads, including controlled-access roads. And this by itself presents an added value - comments Jerzy Marciniak, President of the Azoty Tarnów Management Board.

Communication Office, Grupa LOTOS S.A., ul. Elbląska 135, 80-718 Gdańsk, Poland, tel. (+48) 58 308 87 31, (+48) 58 308 83 88, e-mail: media@grupalotos.pl