MOSCOW (MRC) -- 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, according to "Expert South " with reference to the statement of the Ministry of Energy, Industry and Communications of the region.
Prospects for the plant's development were discussed during the working visit of the Governor of the Stavropol Territory Vladimir Vladimirov and the executive vice president of Lukoil Vadim Vorobyov to Budennovsk.
Stavrolen's General Director Anatoly Afonin said that the modernization of the plant's production will go in accordance with four investment reconstruction projects worth Rb18.8 billion. According to V. Vorobyov, it is planned to expand the plant's PE production up to 420,000-450,000 tonnes and PP production - up to 120,000-130,000 tonnes per year.
"Today, the company is one of the largest industrial taxpayers in the region: from 2018 to 2020 alone, the company's activities brought almost Rb3 billion in tax payments to the budget of the Stavropol Territory," commented Vitaly Shulzhenko, Minister of Energy, Industry and Communications of the Stavropol Territory.
Lukoil intends to complete the implementation of an investment project in the Budennovsky District of the Stavropol Territory by 2027.
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.
Stavrolen, Lukoil's subsidiary, is Russia's second largest high density polyethylene (HDPE) producer after Kazanorgsintez and the fifth largest PP manufacturer. Stavrolen's HDPE and PP production capacities are 300,000 tonnes and 120,000 tonnes per year, respectively, the plant also produces 80,000 tonnes of benzene and 50,000 tonnes of vinyl acetate per year.