Lukoil petrochemical projects

Lukoil petrochemical projects

Lukoil is considering building capacities totaling 1 mtpa of polyethylene and 500 ktpa of polypropylene.

Originally, the Nizhny Novgorod refinery in Kstovo was earmarked as a possible site for the project. However, as Mr. Gimaletdinov’s recently commented, "Perm is leading in all respects," with large amounts of 'right' feedstocks, such as ethane, liquefied petroleum gases, and light naphtha.


LUKOIL has plans to start 500 ktpa polypropylene production at its Kstovo refinery. Polypropylene production in Kstovo would be a logical follow-up to the two new catalytic crackers of 4 mtpa, with propylene as their by-product.

We will set the petrochemical complex project as our investment priority project for 2020. Implementing multi-billion dollar large projects represents an opportunity for increased work orders for Nizhniy Novgorod enterprises as well as for strengthening and developing cooperation.

Gleb Nikitin, Governor of Nizhniy Novgorod region

The plant construction can take 3-4 years, thus, taking into account all preparation time, a supplementary 0.5 MT of polypropylene can be expected on the market in 2024-2025 at the earliest. Some of the produced commodities are supposed to be exported.

Feedstock: propylene


  • 500 KT of propylene


LUKOIL started calling for bids in October to secure contractors that would prepare the site in Kstovo. No timeline for completing the whole project is available.


  • 2020 investment project;
  • Estimated date for the commercial launch — 2024-2025.


LUKOIL might make its final investment decision in 2020 on the construction of gas chemical complex in the Stavropol region for more than 2 bln USD.

The complex could completely recycle the associated petroleum gas from North Caspian fields, making the production more eco-friendly. The feedstock is processed into fuel for LUKOIL’s power facilities in the Stavropol region as well as into PE and PP to meet the regional industry’s and SMEs’ needs.

The presence of ethane in the APG makes it possible to look at the capacity expansion for polyethylene (in Budennovsk) through the cracking of ethane (pyrolysis).

Feedstock: associated petroleum gas etc.

Capacity: n/a


  • The company has entered the next project stage, and consultants have been hired to complete pre-FEED;
  • In 2020, the company will make the final investment decision after receiving pre-FEED.


The option of creating a petrochemical complex in Perm on the basis of LUKOIL-Permnefteorgsintez is being considered. The facility is very complex and expensive. Estimated cost is more than 200 billion rubles.

Feedstock: propylene.

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