Lukoil starts phase one of Stavrolen gas processing plant

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Photo by Lukoil Lukoil's headquarters in Moscow

Russian oil and gas group Lukoil has formally launched phase one of a new gas processing plant (GPP) at its Stavrolen complex aimed at stimulating the regional development of plastics converting companies.

The inauguration of the 2.2 billion cubic metres (bcm) per year petroleum gas unit at Budennovsk in southern Russia was attended by Russia’s deputy Prime Minister Arkady Dvorkovich and Lukoil president Vagit Alekperov.

The Stavrolen gas chemical facility (GCF), which begun in late 2011, will make use of gas feedstocks from the gas fields of the northern Caspian Sea. Part of the gas will be processed to produce polyethylene and polypropylene at the complex.

In April last year, Lukoil completed a series of upgrades at its existing 350,000 tpa ethylene plant on the Stavrolen site which should see both ethylene and PE capacity increased by 255,000 tpa by 2021.

The development of an associated plastics industry in the Stavropol region made up of small and medium sized businesses is expected to lead to the creation of thousands of new jobs. Progress on this scheme has been warmly welcomed in view of Russia’s current economic crisis.

“Today, good economic news is as good as gold and for us, it is very important that this news comes from the Stavropol region,” commented the region’s governor Vladimir Vladimirov at the inauguration ceremony.

“The start up of the gas processing unit in Budennovsk is evidence of the fact that this region continues implementing its key development plans and the industrial sector remains a solid foundation for the growth of our economy.”

Lukoil group, he added, is a strategic investor in Satavropol and “a social and economic driving force for its eastern areas”.

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