MRC) -- Mol Petrolkemiai, a unit of oil and gas company MOL, laid the cornerstone of a HUF 65bn propylene plant in Tiszaujvaros (about 158 km northeast of the capital) on Wednesday, according to BBJ.
By investing EUR 180 million, MOL Petrolkemia builds a new plant in Tiszaujvaros where its foundation stone laying ceremony took place this Wednesday. 7-8% of the investment costs are covered by Hungarian taxpayers through a government decision.
The production unit, which has an annual manufacturing capacity of 100,000 tons of propylene per year, covers a quarter of MOL’s chemical material needs and increases its self-sufficiency.
MOL Group is an integrated, international oil and gas company that is active in over 30 countries and has a track record of more than 80 years in research and production. Being present through its oil industry activities in 14 countries and running production in nine countries, it has a diverse portfolio: it operates three refineries and two petrochemical plants under integrated supply chain management in Hungary, Slovakia and Croatia.
The new plant of MOL Petrolkemia will be of key importance since the planned 100,000 tons of propylene is set to provide a quarter of the chemical material needs of the corporation. The investment integrates well into MOL Group’s updated strategy and is an important step towards chemical transformation and energy transition since the company can gradually increase the ratio of non-fuel products in its portfolio.
In the last 5-10 years MOL has turned Tiszaujvaros into a unique chemical center so by now the city is undoubtedly considered among the most modern petrochemical metropolises. We have a butadiene plant already built here, as well as a synthetic rubber plant that was built in cooperation with Japanese experts, and the town also hosts the largest industrial investment of the last 30 years, the polyol complex built for EUR 1.3 billion, Zsolt Hernadi, Chairman-CEO of MOL Group said.
As MRC reported earlier, The MOL transformation story began in 2016 when it was one of the first within the oil and gas sector to admit that there were gloomy days ahead and that it was essential to begin the transformation. To plot out the path to a low-carbon future, the company published MOL Group 2030+. Five years after the launch of that transformation plan, the Hungarian energy company has revised its goals with an updated strategy.
We remind that in March 2021, MOL became a biofuel producer through the realization of an investment in the Danube Refinery. Bio feedstock will be co-processed together with fossil materials increasing the renewable share of fuels and reducing up to 200,000 tons /year CO2 emission without negatively affecting fuel quality.
MOL is the largest Hungarian oil, gas and petrochemical group, engaged in exploration and production, transportation of hydrocarbons, as well as the operation of a network of trunk gas pipelines. TVK is a 100% subsidiary of MOL. TVK manufactures HDPE, LDPE, and PP.
mrchub.com