Co-operation with Lotos?

| Prospects & Investment |

The Treasury Minister Mikolaj Budzanowski is a big proponent of the idea that after the consolidation process of Azoty Group is complete, it will involve in petrochemical investment project together with Lotos Group.

STRATEGIC PARTNERSHIP

Minister Budzanowski announced that he plans to find strategic investors for Lotos that could assist the company in all the important areas. He also stressed that he was thinking here of investors from the petroleum sector as well as from the chemical sector. The minister did not reveal any details on this project. He wants companies to develop a concept of joint project together. This declaration was stated during the signing of a cooperation agreement between Lotos and PGNiG, when looking for shale gas.

ENCOURAGEMENT FOR INVESTMENT

So far, there is information that the Minister would like to see the new group, engage in investment project associated with the refinery. However, the details are still not known.

In the opinion of the Minister, our merger with Azoty Tarnow is a new urge for this sector in Poland. In turn it should encourage others to engage in new investment projects in the field of chemistry and petrochemical industry. According to Minister Budzanowski the financial condition of both, the future Azoty Group and Lotos allows to carry out joint development projects in the future.

LOCATION OF THE INVESTMENT

The Minister stressed the fact that the investment should be carried out in Gdansk or somewhere else on the coast. The advantage of this location is above all, proximity of the refinery and the access to natural gas from the nearby pipeline.

AWAITING THE DETAILS

Industry specialists are not fully convinced of the project, mainly because the initiative came from the Ministry. However, they do not want to fully comment on this topic, until they know all the details. Only then, they will be able to assess its profitability.

WHAT ARE THE BENEFITS?

Involvement in the chemical industry can bring great benefits for Lotos. Prices of the products offered in our market are more stable than it is in case of liquid fuel. That stability will allow Lotos to expand into new markets, both domestic and foreign. Thus, the involvement of the group similar to ours may bring a major change for the company. Will it be similar in our case? Soon it will be clear.