Lukoil is Considering Building a Complex in Burgas for nearly EUR 1 Billion

Business | June 1, 2018, Friday // 13:24|  views

Lukoil plans to build a complex for the production of polypropylene on the territory of "Neftochim" in Burgas, Vagit Alekperov, president and co-owner of the Russian company, told the RNB business magazine, calling the facility "a small petrochemical complex" and "modernization of the old production" without specifying the amount of the investment.

But Evgeniy Dishluk, an analyst at Gazprombank, estimates the project at 1 billion euros, and a 3-year term is predicted for its realization.

RBC source from Lukoil explains that the company is currently exploring options for building high-tech capacities to produce at least 150,000 tons of propylene per year. Terms and amounts of funding are still being clarified.

Currently up to 80,000 tons of polypropylene per year is produced in Lukoil Neftochim Bourgas, according to Andrei Kostin, head of the Rupec Information and Analytical Center. The other similar site is Stavrolen in the Stavropol region of Russia with a capacity of 100,000-140,000 tons.

Kostin estimates the volume of 150,000 tonnes as "small" and believes that they can be exported to the EU and Turkey. He also says that the investment  can range from "several tens to hundreds of millions and billions of euros".

Alekperov, who talks with RBK after attending Prime Minister Boyko Borissov's meeting with Russian President Vladimir Putin on May 30, added that Lukoil is not interested in increasing its gas stations in Bulgaria. Currently they are 221.

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Tags: Lukoil, Burgas, investment


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