15 December 2011 15:36 [Source: ICIS news]
MOSCOW (ICIS)--The Russian government announced on Thursday that it is backing a major gas-chemical complex in southern Russia planned by the country's leading oil company, Lukoil.
A government order released on Thursday recognises the gas-chemical complex as a "regional investment project" and states that the country's cabinet has decided to grant roubles (Rb) 1.43 billion (€34.6m) from the Investment Fund of the Russian Federation to support the project.
The decision is important for Lukoil because it shows the government supports infrastructure development, a Lukoil spokesman said on Thursday. The money will be used to help finance a new rail line to serve the project, the spokesman added.
The complex, designed to utilise natural gas from Lukoil's offshore Caspian gas fields, will include a gas processing plant.
It will also have facilities to produce 600,000 tonnes/year of high density polyethylene (HDPE) and 400,000 tonnes/year of polypropylene (PP) at Budyennovsk in Stavropol region, near Lukoil's existing polyethylene (PE) and PP plant.
Lukoil first indicated plans to build the gas-chemical complex back in 2006 and it was previously expected on stream by 2010. It is now expected on stream after 2015 at an estimated cost of about Rb80bn, according to Lukoil.
(€1 = Rb41.37)
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