Lukoil plans Russia’s largest ethylene complex

31 July 2008 15:54  [Source: ICIS news]

PRAGUE (ICIS news)--Lukoil has signed an agreement for the construction of a $3bn (€1.91bn) ethylene plant in south Russia’s Stavropol territory which may be the largest in the region, the territory’s governor Valery Gayevsky said on Thursday.


The territory governor and Alexei Smirnov, the head of the Russian oil giant’s petrochemicals arm Lukoil-Neftekhim, had signed a memorandum of understanding, they said.


Sourcing oil from the northern part of the Caspian Sea, Lukoil-Neftekhim would use the installation to produce an annual 900,000 tonnes of polyethylene (PE) and 300,000 tonnes of polypropylene (PP), it said.


This, added the statement, would be equivalent to about 30% of polymers produced in Russia.


It is estimated that the complex could be operational within four to five years and employ up to 1,500 people, it said.


Russian companies are lining up a series of potentially huge petrochemical investments.


However, earlier this year, Nikochem general director Eldor Azizov told a conference the country’s existing petrochemicals industry was in a critical state due to underinvestment.


($1 = €0.64)


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By: Will Conroy
+44 20 8652 3214

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