Lithuanian refinery to halt bitumen output for a month

Bitumen production at Polish firm Orlen's 190,000 b/d Mazeikiai refinery in Lithuania will be halted for around a month from 7 October because of maintenance, according to a source with knowledge of the refinery's operations. It is not clear what impact the work will have on other products.

The maintenance had initially been expected to last for just two weeks and cut output of all oil products, including bitumen, by around 50pc.

As a key supplier of bitumen to the Baltic and Nordic markets, Orlen is looking to transport around 20,000t of bitumen from its refinery at Plock in Poland via trucks to the Baltics to help make up for the lost supply during the maintenance, the source said, adding that the company is also looking into the possibility of importing bitumen to Klaipeda in Lithuania. Klaipeda is usually used to export bitumen produced at Mazeikiai.

The loss of supply will be particularly felt in the Baltic markets as bitumen consumption there typically peaks in October. The Mazeikiai refinery has been an important supplier of bitumen in the region after sanctions against Russia stopped cross-border truck flows into the Baltics last year.

Swedish specialty products producer Nynas is set to benefit from the maintenance as it operates a bitumen terminal at Muuga in Estonia.

Bitumen production at Mazeikiai reached a 10-year high of 468,400t in 2023. The maintenance work could prevent the refinery from hitting a new record this year.

By Tom Woodlock and Fenella Rhodes