Lukoil is planning to invest a 120 billion roubles (US$2.1 billion) to build a chemicals complex on the Northern coast of the Caspian Sea that will use natural gas as a feedstock.
“We have decided to invest in the construction of a gas-chemical complex there, which will manufacture chemicals, and its second stage will turn out polyethylene and polypropylene,” Vagit Alekperov, CEO of the Russian oil producer said in a meeting with Russian President Vladimir Putin, according to a statement on the Kremlin's official website.
“We have drafted a new project stipulating the comprehensive development of the Caspian Sea’s northern sector. Today, a gas pipeline has been built towards Budyonnovsk,” he added.
The chemicals complex will enable the development of the southern section of Stavropol Territory, Which is in need of jobs. The complex will employ 600 workers and over 3,000 builders.
Alekperov said the investment project has been approved, and preparations are now underway. Lukoil is working on the project at a government level to move the complex along.
Chemicals produced from the complex will exported using the Novorossiisk port as well as sold domestically since the Stavropol and Krasnodar territories remain agricultural regions, Alekperov told Putin.