ORLEN Lietuva - Major Fire in October 2006

Major Fire in October 2006

On October 12, 2006, a major fire erupted in the plant around 2:30 pm. The cause appears to have been a leak. The fire was extinguished after 8 pm the same day, although some spot fires were still being put out the next day. During the fire, a 50 meter height vacuum tower collapsed, oil products leaked out, and a series of explosions were heard; The blaze covered about 800 square meters at one point. 23 firefighting vehicles were brought into the scene of the accident and eyewitness accounts said that fires reached 150m in height and could be seen from several kilometers away. A Black cloud of smoke could be seen from a great distance, and drifted towards the nearby Latvian border. There were no casualties among personnel.

Damages incurred are estimated around 38 million Euro, as well as around 30 million in lost revenue due to production losses. While significant, when compared with the total output and profits of the plant, they are not as large as had been feared.

Initially, after the fire, serious doubts were raised by various media over whether PKN Orlen would go through with the deal to buy the company (although these were immediately denied by Orlen representatives). In the end, the blaze did not stop the takeover from going ahead.

Suspicions were raised by various high-profile persons as to whether the fire was an accident, or industrial sabotage on the part of the Russian energy companies in revenge for not being offered to buy the company. Notably, perhaps, the vice-leader of the Russian Duma, Konstantin Kosachev had said that "instability will continue to plague the refinery until the Lithuanians finally realize which partners one should choose" only a few hours before the start of the blaze. However, no evidence of foul play has been revealed since the blaze.