Lukoil begins building gas chemicals complex in Budennovsk
BUDENNOVSK. Oct 25 (Interfax) - Russian oil major Lukoil is beginning the construction of a gas chemicals complex in Budennovsk, an Interfax correspondent reported from the ceremony for the internment of a time-capsule symbolizing the start of construction on the first production line, which is to be an integral part of the future complex.
Deputy Prime Minister Igor Sechin, who was present for the ceremonies, expressed his confidence the facility would open for business in 2014.
Associated petroleum gas from deposits Lukoil is development in Russia's sector of the Caspian Sea will constitute the bulk of the raw material the plant will process. The oil company is already producing hydrocarbons at the Korchagin deposit, and will launch the Filanovsky field in 2015 and the Sarmatskoye deposit in 2017 or 2018.
The complex's construction will be done in several phases. Plans for 2015 involve launching the first production line at a gas refinery with capacity of 2 billion cubic meters (bcm) per year and a combined-cycle power generation unit (135 mWt), as well as the modernization of an existing facility for the production of ethylene for the subsequent processing of liquid gases.
Plans for 2017 include launching a second gas refining line at the plant (4 bcm per year) and another ethylene-producing installation (225,000 tonnes per year). Saleable gas from the gas chemicals complex will be fed into the Gazprom gas-transport system.
Lukoil will be investing 109 billion rubles in the Budennovsk complex.
Lukoil will next year complete the design work for a gas pipeline running 235 kilometers from the Caspian coast to Budennovsk, a pipeline eventually able to transport 6 bcm.