LUKOIL commissions 120,000 tpa Polypropylene plant

07-Mar-07

LUKOIL has commissioned a 120,000 tpa polypropylene production unit at OOO Stavrolen. The polypropylene unit is the first facility of its kind in the LUKOIL Group petrochemical complex. The feedstock propylene, produced at OOO Stavrolen, will be transferred to the unit via a pipeline. Design of the unit is based on the operational process Unipol which is developed by Dow Chemicals (USA). Growing needs of the domestic Russian market will be met y this plant. Construction of the polypropylene production unit at OOO Stavrolen was launched in 1986. OAO Stavropolpolimerprodukt was set up in 1992 to continue construction and start operation of the unit. However, in 1995 due to termination of government financing all operations were suspended. To complete the project, the LUKOIL Group acquired 87.42% of OAO Stavropolpolimerprodukt assets from State Unitary Enterprise Moscow Industry and Trade Center of Integration and Development for USD 32 mln. Construction of the facility was resumed in January of 2005. Petrochemical plant Stavrolen was commissioned in 1981. It is one of the largest Russian enterprises for polyethylene and other petrochemicals production. OOO Stavrolen alongside with OOO Saratovorgsintez, OOO Karpatneftechim (Ukraine) and AO LUKOIL Neftochim Bourgas (Bulgaria) are the basis of the LUKOIL Group's petrochemical complex.