6 Jul 2010 13:32

Stavropol Territory submits application for 3.9 bln rubles from investment fund for Lukoil project

STAVROPOL. July 6 (Interfax) - Stavropol Territory has submitted an application to Russia's investment fund for 3.9 billion rubles for a Lukoil project to build a gas processing facility in the North Caspian at Budennovsk-based OOO Stavrolen, the territory's administration told Interfax.

"Without state support, implement this idea is impossible. But a representative of the investor company said that support is available in Stavropol. For instance, the application s submitted to the Investment Fund of the Russian Federation worth 3.9 billion rubles foresees the allocation of 450 million rubles from the Territorial Budget in co-financing," an administration representative said.

"The total cost for the construction of an oil-chemical facility comes to 112 billion rubles. It will be implemented in two stages. The first stage for until 2016 will bring output to 2 billion cubic meters of gas and, in total, will reach 6 bcm. This will be the biggest oil and chemical facility in the country," he said.

It was earlier reported that OJSC Lukoil plans to invest in the development of mass production of polyethylene and polypropylene worth 112 billion rubles in Stavropol until 2017. This production will use hydrocarbon resources extracted in the North Caspian.