Lukoil opens bidding for North Caspian gas pipeline

OAO Lukoil is accepting bids for construction of its North Caspian-region Artesian-OOO Stavrolen natural gas pipeline. The 263.3-km, 28-in. OD pipeline will carry 8 billion cu m/year. Lukoil expects it to enter service May 2015.

Associated gas produced at Lukoil’s North Caspian oil fields will move via the pipeline to a polyethylene/polypropylene plant at the Stavrolen industrial site, in the Stavropol region of Russia. Market-grade gas will travel from Stavrolen to the Gazprom pipeline system. Lukoil expects Stage 1 of gas processing for the polymer plant to enter service in 2015 at 2 bcm/year. The complex has one of the largest pyrolysis units in Russia at 350,000 tonnes/year ethylene.

Lukoil plans to build power transmission lines along the pipeline route—including 22 transformer substations, 24 control points, telecommunication lines, and other infrastructure facilities—to ensure its efficient operation. The pipeline will be equipped with a leak detection system and an electrochemical protection system, as well as other technical security devices, Lukoil said.

Stavrolen is a Lukoil subsidiary.

Contact Christopher E. Smith at chriss@ogjonline.com.

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