Mažeikių Nafta is an oil refinery and oil-processing plant in Lithuania. It is the only refinery in the Baltic States.
Pipeline System
Mažeikių Nafta operates a system of pipelines with a total length of around 500 kilometers. This system includes two pump stations near Biržai and another near Joniškis, crude oil pipelines to the Mažeikiai Refinery and Būtingė Terminal, a crude oil pipeline leading to Ventspils, and a products pipeline supplying diesel fuel to Ventspils. Construction of pipelines in Lithuania started in 1966, with crude oil starting to flow through the pipelines in 1968. In 1992, the company Naftotiekis was founded for the operation of Lithuanian pipelines, which became part of Mažeikių Nafta in 1998.
Marine Terminal
The Būtingė Terminal is state-of-the-art facility of Mažeikių Nafta situated in an all-year-round ice-free area of the Baltic Sea. The project began in 1995 when the company Būtingės Nafta was established for the purpose of constructing and operating the Terminal. In 1998, Būtingės Nafta was merged into Mažeikių Nafta.
The first tanker was loaded in Būtingė in the summer of 1999 and took on board a shipment of YUKOS crude oil. The Terminal can export up to 14 million tons of crude oil a year. But is also capable as an import terminal.
During the construction of the facility, an environmental monitoring program was introduced that includes tests of sea and ground waters. With the start of the terminal operations, an expanded environmental monitoring program was launched. This included a computer-based leak detection system.
The complex of the Būtingė Terminal consists of a crude oil pipeline, which connects the facility with the Mažeikiai Refinery, onshore terminal equipment and tanks at Būtingė, offshore pipeline, and a single point mooring (SPM) buoy. These units form the onshore and offshore parts of the Terminal.
Sale of the Company
Several potential buyers from Russia, Kazakhstan and Poland showed their interest in the oil plant. After several months of talks, the proposal from Polish company PKN Orlen was the most lucrative and satisfied National Security criteria of Lithuanian state. Minister of Economics Kęstutis Daukšys and Vice-minister of Economics Nerijus Eidukevičius singed selling contracts in 2006-06-09. By this new agreement Mažeikių Nafta will be sold to PKN Orlen. Agreement states that Lithuanian Government will sell 30.66% shares of their Mažeikių Nafta company for approximately 700 million US dollars. PKN Orlen will also buy 53.7% shares for 1.492 billion US dollars from bankrupted Yukos. Lithuanian government is hoping that the new contract will come into force in several upcoming months.
Major fire
On October 12 2006 major fire erupted in the plant, apparently due to the technological problems. During the fire 50 meter height vacuum tower collapsed. Around one hundred firefighters were brought into the scene of the accident and by the accounts of eyewitnesses fires reached more then hundred meters. Black cloud of smoke could be seen from great distance, which drifted towards Latvia border. The fire was extinguished at the same day night, but small isolated parts were still burning and next day. There were no casualties among personnel.
It is clear that plant will not produce gas any longer, diesel fuel production is uncertain. Intact parts of plant are kelp only in minimal regime.