Petrochemical projects Lukoil

Petrochemical projects Lukoil

LUKOIL is considering building production 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 commented, "Perm is leading in all respects," with large amounts of 'right' feedstocks, such as ethane, liquefied petroleum gases, and light naphtha.


LUKOIL 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 to bring additional orders for Nizhniy Novgorod enterprises, to strengthen and develop cooperation.

Gleb Nikitin, Governor of the Nizhniy Novgorod region

The plant construction can take 3-4 years, thus, a supplementary 0.5 MT of polypropylene can be expected to enter the market in 2024-2025 at the earliest. Some of the output is expected to be exported.

Feedstock: propylene


  • 500 KT of polypropylene


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;
  • The estimated date of the commercial launch is 2024-2025.

LUKOIL Stavrolen

Next year Lukoil may make a final investment decision on construction of a gas chemical complex in the Stavropol Territory worth more than 2 billion USD.

The company allows to completely utilize incoming associated petroleum gas from the fields of the North Caspian, which will increase the environmental friendliness of production. Raw materials are processed into fuel for Lukoil’s energy capacities in the Stavropol Territory, as well as into polyethylene and polypropylene for the needs of the regional industry, small and medium-sized businesses.

The presence of ethane in the APG makes it possible to look at the expansion of capacity 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 completing 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.

Raw Material: Propylene

Lukoil plans to develop in petrochemical industry
LUKOIL has seriously set its sights on the development of a petrochemical chemistry block. The company has already been working on the processing of propylene and methane projects, the involvement of ethane and LPGs is also considered.

Relevant news

The configuration selection of the NKNK olefin complex is at the final stage
The choice of the configuration of the olefin complex EP-600 "Nizhnekamskneftekhim" (NKNK) is at the final stage.
Chinese PET produced 87% of Russian granulate imports in 2019
Supplies of Chinese PET granulate to Russia increased by 13% in 2019 and amounted to 87% of imports.
The production of linear polyethylene in Russia grew by 32% over the year
Russian plants Nizhnekamskneftekhim and Kazanorgsintez increased production of linear polyethene by 32% year-on-year.
Methyl-tret-butyl ether production plant to be built in Shymkent
Development Bank of Kazakhstan has opened a credit line to Shymkent Chemical Company for construction of a methyl-tret-butyl ether production plant in Shymkent.
Elastic Cloud Computing for More Accurate Seismic Reservoir Predictions
Sharp Reflections has joined Go Digital Oil & Gas Middle East summit as a partner to participate in Dragons' Den Style Technology Contest.
The What, How and Why of Digital Twin by Kongsberg Digital