PKN Orlen and Lotos hope to establish europes largest Parafin group

Despite the fact that Polish fuel giant PKN Orlen has turned down the offer to cooperate with the Lotos Group, it does not intend to give up the a lliance. "We are interested in a complex cooperation not the selected areas, which will be beneficial only for GL" said Orlen's spokesperson Krzysztof Mikołajczyk. According to information from Puls Biznesu, Lotos wanted to set up cooperation with Orlen in six key areas. "On the basis of the capital potential of Orlen and the Lotos Group, we could establish the second largest paraffin group in Europe" said Orlen's president Maciej Gierej. LG is also considering the joint production of asphalt as well as the exchange of fuel, but hoped to launch cooperation in the construction of the so called IGCC installation estimated to be worth $540 million. For the time being, Lotos is trying to obtain financial resources for the project. At the same time, GL intends to take over three refineries owned by Nafta Polska - Jasło, Czechowice and Glimar. (Puls Biznesu, p. 4) A.Z.