Integrated Annual Report of LOTOS Capital Group 2016

We reduce energy consumption

[G4-EN1] [OG1] [OG8]

The LOTOS Group has in place a List of Environmental and Energy Efficiency Objectives, which includes the following three objectives: 

1. Improved energy efficiency of the inter-plant pipeline steam heating system,
2. Reduced consumption of primary energy at the refinery,
3. Improved energy efficiency of the inter-unit connections system.

In our business, cost of energy represents the largest item of operating expenses, therefore we attach particular importance to energy consumption by:

• Ensuring the rational use of energy, 
• Maintaining equipment in good technical condition,
• Implementing effective investment projects. 

The effectiveness of such an approach is confirmed by the fact that our refinery has for many years ranked among the most energy efficient refineries in Europe.

We operate on the basis of the Energy Management System (EnMS), whose primary purpose is to optimise energy consumption. The energy efficiency of the units and the intermediate processes they perform are monitored on an ongoing basis. The Energy Efficiency Team analyses individual areas and participates in activities aimed at reducing energy consumption.

The LOTOS Group undergoes an energy audit to identify potential for efficiencies and areas where undertaking organisational, overhaul or investment initiatives is most likely to bring energy savings and economic benefits.

[G4-EN1]

LOTOS Group's consumption of raw materials in production processes in 2016

REBCO (Russian Export Blend Crude Oil) accounted for 75.18% of the total crude procurement volume. Crude oil from other sources, including approximately 220,000 tonnes supplied by the LOTOS Petrobaltic Group, accounted for the balance of the crude feed. The mix of crudes resulted from the production optimisation process whose objective was to take advantage of opportunities for increasing the refinery's processing margins.

[OG8]