- GPU-2 will increase gas utilization to 5 bcm per year.
- Stavrolen's ethylene production will rise from 350 to 420 thousand tonnes per year.
- Polyethylene output will grow from 300 to 405 thousand tonnes per year.
- Total investment in the Caspian region's petrochemical value chain may reach 300 billion rubles.
Foundation Stone Ceremony
Vagit Alekperov, President of PJSC LUKOIL, and Andrey Khlopyanov, acting First Deputy Chairman of the Government of Stavropol region, participated in the foundation stone ceremony for the second stage of the Gas Processing Unit (GPU-2) at the Stavrolen petrochemical plant in Budennovsk.
Increased Gas Utilization
The construction of GPU-2 aims to increase the utilization of associated petroleum gas from North Caspian fields to 5 bcm per year. This will provide more valuable feedstock for pyrolysis, including ethane and natural gas liquids, used at Stavrolen to manufacture commercial products.
Production Capacity Expansion
GPU-2 is the first unit under the Stavrolen integrated development program. LUKOIL plans to enhance the capacity of pyrolysis units and produce a greater amount and variety of polyethylene and polypropylene. The program is expected to increase Stavrolen's ethylene production from 350 to 420 thousand tonnes per year, polyethylene from 300 to 405 thousand tonnes per year, and copolymer polypropylenes from 80 to 120 thousand tonnes per year.
Strategic Importance
The integrated development program is a key part of LUKOIL's petrochemical strategy, focusing on the use of its own feedstock and efficient monetization of North Caspian natural gas. The total investment in the Caspian region's petrochemical value chain could reach around 300 billion rubles.
Economic Impact
According to Andrey Khlopyanov, the projects at Stavrolen are strategically important for the Stavropol region, bringing new investments, jobs, and additional budget revenues. Stavrolen's operating results this year are expected to contribute significantly to federal, regional, and local tax revenues.
