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

Fireside chat with Andras Svebis, CIO, Mol
Sibur says it raises $500 million in five-year eurobonds
Sibur said it has raised $500 million following the offering of 5-year eurobonds on the Irish Stock Exchange.
Agilyx agrees to an exclusive collaboration with TechnipFMC to enable new pathways for post-use polystyrene to enhance the circular economy
Agilyx Corporation announced today the exclusive collaboration with TechnipFMC to jointly develop a process to purify Agilyx Styrene Oil to high purity styrene.
Eni, NextChem partner on circular gas, waste projects
Eni SpA and NextChem, have signed an agreement to develop industrial circular economy projects in their native Italy.
A partnership centered on polystyrene recycling
Ineos Styrolution, Agilyx work to develop a polystyrene recycling facility near Chicago.
Shell and BP Look to Monetize Their Digital Technologies
Oil and gas companies have looked beyond their own sector to diversify revenue streams, most notably in power.