- Project’s investment value is about EUR 120 million
- New butadiene plant will improve MOL Group’s profitability
- Chairman-CEO Zsolt Hernádi laid the foundation stone
Tiszaújváros, 15th October, 2013 – Today the construction of the new TVK butadiene recovery plant has begun. As a result, MOL Group’s petrochemicals value chain will be expanded in two years time with a new element. The new butadiene plant will improve TVK profitability in Hungary and therefore also MOL Group’s profitability.
Viktor Orbán, Prime Minister of Hungary, participated in the foundation stone-laying ceremony for the new TVK butadiene recovery plant at Tiszaújváros, accompanied by Zsolt Hernádi, MOL Group Chairman-CEO, Dr. Roland Mengyi, President of Borsod-Abaúj-Zemplén County General Assembly and Christof von Branconi, Vice President of LURGI, the project contractor.
The new plant will have 130,000 tons/year capacity and pilot operations will commence in the beginning of 2015, with the commissioning date planned for Quarter II, 2015. Butadiene is the main feedstock in synthetic rubber production. Demand for butadiene and its profitability are significantly higher than those of polymer products produced by TVK. MOL Group also assesses the potential of further butadiene processing.
The total project capex, including all developments, will be about EUR 120 million and will create 32 new jobs. During the construction phase, several hundred people will find employment. Butadiene will be produced in a closed technology system, thus no polluting substances can leak into the atmosphere and the environmental load in the region will be no higher.
Zsolt Hernádi, MOL Group Chairman-CEO said: “We laid the foundation stone of one of Northern Hungary’s most important future developments. We bring leading-edge and innovative technology to Tiszaújváros opening new dimensions for the economy of the whole region. Our goal is to continually expand our product slate and operations in Hungary through innovation and various projects. This new project thus simultaneously has great significance for the national economy as well as for maintaining MOL Group’s competitiveness.”
About MOL Group
MOL Group is an integrated, independent, international oil and gas company, headquartered in Budapest, Hungary. It has operations in over 40 countries and employs around 30,000 people worldwide. MOL’s exploration and production activities are supported by more than 75 years’ experience in the hydrocarbon field. At the moment, there are production plants in 7 countries and exploration activities in 12 countries. The Group operates five refineries and two petrochemicals plants, under integrated supply chain management, in Hungary, Slovakia, Croatia and Italy. MOL Group also owns a network of over 1,700 filling stations across 11 countries in Central & South Eastern Europe.
PRESENTATION OF BUTADIENE RECOVERY PLANT PROJECT
TVK, as a Member of MOL Group, will be constructing the new butadiene recovery plant. The total project capex will be HUF 35 billion.
The project will be implemented in two phases. Firstly, we will build a C4/C5 separator unit in the TVK Olefin-2 Plant. C4/C5 fractions, hydrocarbon compounds with special parameters, are by-products of the ethylene production process. They were formerly used for energy generation purposes, these fractions being burned in the Olefin Plant as fuel. The C4/C5 hydrocarbon fractions will be separated to produce feedstock for butadiene recovery. Construction of the C4/C5 separation unit is now fairly advanced and the process of assembling the technology is currently in progress.
The second phase of the project will be the construction of the butadiene recovery plant. The 130,000 tons/year capacity plant will produce 1,3-butadiene (there are several types or forms of butadiene), the key feedstock for synthetic rubber production. The profitability of and demand for butadiene is significantly higher and better balanced than for the polymers produced to date by TVK. The new plant will create 32 new jobs and it will improve TVK’s and therefore MOL Group’s profitability in Hungary by several billion forints per annum.
Butadiene will be produced in a closed technology system, thus no polluting material will leak into the atmosphere under ordinary operating conditions so the environment and health of employees working at TVK or living in the vicinity of the plant will suffer no ill effects. The environmental load in the region will be no higher, either. The supplier of the state-of-the art technology is the world-famous German BASF company.