Final investment decision on the Rijeka Refinery Residue Upgrade project

Source: press release, 12 December 2019

Rijeka Refinery is located in Urinj (Kostrena Municipality) near Rijeka, Croatia, and began operations in 1965
Rijeka Refinery is located in Urinj (Kostrena Municipality) near Rijeka, Croatia, and began operations in 1965 (photo: MOL Group)

INA Supervisory Board has granted its prior agreement for the Rijeka Refinery Residue Upgrade project and the INA Management Board unanimously approved the investment. The decision was supported both by the Croatian Government and by MOL, the two major shareholders of INA.

This investment is increasing the overall efficiency and complexity of the Rijeka Refinery and a significant part of the INA Downstream 2023 New Course transformation program, which is aimed at turning INA’s Refining and Marketing segment into a sustainable and profitable business. The total investment budget amounts to around HRK 4 billion (around USD 600 million) and includes the Residue Upgrade unit, the reconstruction of existing refinery units as well as a new port with closed petroleum coke storage. The Residue Upgrade unit, using delayed coker technology, will improve the product structure of Rijeka Refinery by increasing the share of profitable white products, i.e. motor fuels and its commissioning is expected in 2023.

INA’s Downstream 2023 New Course transformation program also includes the concentration of crude refining activity in the Rijeka Refinery and the conversion of the Sisak Refinery to an industrial site, which will serve as a base for bitumen production (a project approved in March 2019), a logistic hub and potentially for lubricant production and a bio-component refinery, subject to further investment decisions.

József Molnár, MOL Group CEO and the Vice President of INA Supervisory Board, comments, “This decision proves MOL Group’s commitment to INA. By completing the Residue Upgrade project, we will substantially increase the complexity and the efficiency of the Rijeka Refinery. I firmly believe that the competitiveness of INA’s Refining & Marketing business will further improve once the unit is commissioned and the investment will have a significant positive impact on the company’s profitability in the future.”

Tomislav Ćorić, Croatian Minister of Environment and Energy says, “With today’s decision to launch the Rijeka Refinery modernisation project, INA is making a major step forward. This is one of the biggest investments in our energy sector and I am pleased that it was realised during the term of this Government. This investment will improve Rijeka’s product structure, increase profitability and improve INA’s environmental competitiveness by significantly reducing CO2 and other harmful gases.”

Sándor Fasimon, President of INA Management Board, adds, “The decision on the Residue Upgrade project marks an important milestone in the implementation of the INA Downstream 2023 New Course program, as well as in the company’s history. It will transform the Rijeka Refinery into a modern refinery in Europe and will ensure INA keeps a strong position on the market. It’s a major investment that will significantly affect the company’s business in the future.”