MOSCOW (MRC) -- Lukoil announces the start of a catalytic cracking complex construction project at the Perm refinery, said the company.
The project is implemented under an agreement with the Ministry of Energy of the Russian Federation on providing an investment incentive as part of the negative excise tax on refinery feedstock until January 1, 2031.
The feedstock capacity of the complex will be 1.8 million tonnes per year. The complex will include a catalytic cracking unit, a high-octane gasoline components unit and infrastructure facilities. A distinctive feature of the new complex will be the high adjustable propylene yield.
The complex is planned to be launched in 2026, which will allow to increase production of high-octane motor gasolines and to start production of polymer grade propylene to be used as a feedstock at Lukoil's petrochemical facilities.
Lukoil completed the core Russian refineries upgrade program in 2016, with investments exceeding USD10 billion. Lukoil was the first Russian company to start producing exclusively Euro-5 compliant gasolines and diesel fuel and to fulfil conditions of the Russian Refineries Upgrade Program under quadripartite agreements between the Russian authorities and vertically integrated oil companies. The Company continues upgrading its refineries in Russia. In 2021, Lukoil finished construction of a high-viscosity index lubricants production complex in Volgograd, commissioned PENEX isomerisation unit and a polymer-bitumen binders production unit at the Nizhny Novgorod refinery. A delayed coker unit is planned to be launched at the Nizhny Novgorod refinery before the end of 2021.
As per MRC, Lukoil plans to invest USD3 billion in production of petrochemicals within the next 6 years. Lukoil has put the unit's annual production capacity at 800,000 tonnes. It will help Lukoil to boost production of gasoline by 400,000 tonnes per year.
As MRC informed earlier, Stavrolen (Budennovsk, part of Lukoil), a major polyolefins producer in the Russian Federation, plans to upgrade its technical equipment and to increase its production of polyethylene (PE) and polypropylene (PP) as part of modernization.
As reported earlier, in the first week of September 2020, Stavrolen resumed PP production after a forced and long outage due to technical problems. In fact, the plant did not produce PP since 16 July.
According to MRC's ScanPlast report, Stavrolen produced slightly over 11,000 tonnes of PP in April versus 10,700 tonnes a month earlier. The Budenovsk plant"s overall output of propylene polymers reached 42,900 tonnes in the first four months of 2021, up by 4% year on year.
Lukoil is one of the leading vertically integrated oil companies in Russia. The main activities of the company include operations for exploration and production of oil and gas, production and sale of petroleum products. Lukoil is the second largest private oil company worldwide by the proven hydrocarbon reserves. Lukoil"s structure includes one of the largest Russian petrochemical plant - Stavrolen.
MRC