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Pipeline investments

Oil giant PKN Orlen is cutting its logistics costs by increasing pipeline fuel transfers at the cost of road transport.

"Investments in pipelines pay back after 15 years, but in operational costs moving away from road transport to pipelines is visible immediately. It is several times cheaper than even transporting fuels by rail," said Tomasz Grzela, executive director for logistics in Orlen.

The firm is returning to an old concept of extending and building new pipelines such as from Boronów near Częstochowa to its Trzebinia refinery, "We have discussed it with PERN [the pipelines operator]. By the end of the year we should sign a letter of intent concerning the investment.

Orlen will also complete a pipeline from Ostrów Wielkopolski to Wrocław, while in Lithuania it will construct a pipeline from Mozejki to Klaipeda.

Source: Puls Biznesu

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