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.
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.
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.
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