MOL Group is an international oil, gas, petrochemicals and retail company with market leading positions in Central and Eastern Europe (CEE). MOL Group Downstream operates in 12 countries with 6 production units satisfying wholesale customer needs with 18 mtpa refined products and 1,3 mtpa petrochemicals worldwide.
Its integrated business model has provided stable and robust profitability in recent years. The company operates in the mature oil and gas industry that is characterized by limited growth potential and forecasted to be endangered by decreasing demand for fossil fuels, MOL Group’s main products. In addition, regulatory environment is becoming more challenging along with rapidly changing customer habits and needs. How to ensure further development and growth for the company in these circumstances?
The company set its long term 2030 and 2030+ strategies with the aspiration to sustain its regional leadership in core businesses, become a leading chemical group and be the customer’s first choice. By 2030 MOL will transform its traditional businesses for the low-carbon future by making them even more efficient and focused. Downstream will become a highly efficient, sustainable, chemical focused leading downstream player with focus on CO2 reduction, efficiency and the circular economy. To achieve this flexibility and efficiency has been put in focus for refining in addition to maximizing petchem feedstock and high value-added chemicals. Petchem demand growth is aimed to be leveraged by increased scale and value via diversification along the value chain. But should the company focus on the core commodity markets or turn more to diversify the current product portfolio? And what are the strategic answers on sustainability matters such as decarbonization and circular economy?
By now the company is already on the path towards the realization of its 2030 strategy. This paper presents MOL Group’s strategic steps made so far to exploit the opportunities of the rise of chemicals and put future opportunities and challenges in the continuously changing external environment on the balance..
