Starting from 1997 LUKOIL has been actively developing its petrochemical business aiming to increase the share of high value-added products and reduce dependence on the changeable environment of the global oil market, as well as to create additional opportunities for growth of the Company's shareholder value. Petrochemical operations are the most complex of all the oil company's refining operations. LUKOIL has petrochemical facilities in Russia (Saratovorgsintez, Stavrolen), Bulgaria (LUKOIL Neftokhim Burgas refinery with petrochemical operations), and Italy (ISAB refinery with petrochemical operations). The Company produces pyrolysis and organic synthesis products, fuel fractions, and polymer materials, satisfying a considerable part of the domestic demand for a number of chemical products; at the same time it is a major exporter of chemical products to more than 30 countries of the world.
Production of polyethylene, polyvinylchloride, caustic soda and other products
|Stavrolen||Budennovsk (Stavropol Krai, Russia)||Production of acrylonitrile,|
sodium cyanide, and other products of organic synthesis
|Refinery with petrochemical operations|
|Neftokhim Burgas||Burgas, Bulgaria||Production of polypropylene|
|ISAB refinery||Sicily, Italy||Cumene production|
Commissioned in 1957.
A LUKOIL Group company since 1999.
History of the refinery
Since 2000 the Company has been reconstructing the existing operations at the enterprise. In 2008, a 15 th. t/year sodium cyanide production unit was commissioned. In 2011, the project for expansion of sodium cyanide production up to 18 th. t/year was completed. In 2002, designing of the second sodium cyanide production train was commenced. In 2013, as part of the project entitled "Expansion of sodium cyanide (SC) production up to 30 th. t involving reconstruction of acrylonitrile production (AN) facilities up to 190 th. t/year", the equipment for the new unit was supplied and construction activities performed in the SC storage facility, and the development of baseline design for AN facilities is now under way.
In 2014, construction and assembly work was completed as part of the first stage of the project for the expansion of sodium cyanide (SC) production up to 30 th. t., and positive opinion of the General Board of State Expert Review was obtained. Design and survey work is now under way as part of the second stage of the project for reconstruction of acrylonitrile production (AN) facilities up to 190 th. t/year.
In 2015, the second sodium cyanide production train was commissioned (first stage of the project for the expansion of sodium cyanide (SC) production up to 30 th. t.). Design and survey work was completed as part of the second stage of the project for reconstruction of acrylonitrile production (AN) facilities up to 190 th. t/year.
- Entity website
Commissioned in 1981.
A LUKOIL Group company since 1998.
History of the refinery
The refinery has one of the Russia's largest pyrolysis units that can use different kinds of hydrocarbon feedstock, including straight-run gasoline, propane-butane fraction, and BFLH. The enterprise was upgraded to increase the share of gas component in the processed feedstock up to 40%. Changes in the composition of feedstock and furnace designs secured high performance of the operations and increased the yield of basic olefins.
Popypropylene production facilities of 120 th. t per year capacity were commissioned in 2007. Creation of a facility to process North Caspian gas now is a key project within the Petrochemistry business segment. The project is aimed at increasing added value due to the advanced processing of the gas feed and the broad fraction of light hydrocarbons into petrochemicals.
In 2011, design documentation was prepared for GPP-1 (stage 1). In 2012, elaboration of engineering and design documentation began for technical re-equipment of the existing ethylene production operations aimed at maximized processing of liquefied gases.
In 2015, construction of intra-plant railway tracks, and ethylene storage facility was completed; ethylene production unit was re-equipped; state expert review opinion was obtained with respect to the design documentation for reconstruction of the polyethylene production facilities, construction, erection and pre-commissioning activities were completed for the GPP-1 project.
GPP-1 was commissioned in 2016. The project implementation will make it possible to fully utilize the associated petroleum gas (APG) from the Northern Caspian fields, provide own gas supplies to the LUKOIL Group's new power generation facilities in Stavropol Krai, and launch the production of petrochemicals. A part of the APG will be processed into polyethylene and polypropylene, which will, in its turn, drive development of SMEs in the region that are engaged in plastic processing. The GPP-1 feedstock processing capacity is 2.2 billion cu. m. per year.
- Entity website
REFINERIES WITH PETROCHEMICAL OPERATIONS
Сommissioned in 1964. Became a part of LUKOIL Group in 1999.
|Marketable products, th. t||65.8||79.6||84.0||97.8||94.1|
|Polypropylene, th. t||65.8||75.0||70.2||65.4||60.0|
|Propylene, th. t||-||3.3||12.6||31.4||33.2|
|Other, th. t||-||1.4||1.3||1.0||0.9|
Сommissioned in 1964 (northern refinery) and in 1975 (southern refinery).
LUKOIL acquired 49% share in the refinery in 2008, increased it to 60% in 2011, to 80% in 2012 and to 100% in 2013.
|Processing, th. t||-||-||195.6||197.6||196.9|
|Marketable products, th. t||-||-||274.2||289.4||281.3|
|Cumene*, th. t||-||-||267.0||285.3||279.7|
|Benzene (85%), th. t||-||-||7.1||4.1||1.6|