Naftogaz Group invests in construction of the largest LPG plant in Ukraine

Feb 15, 2021 | Category: Official
Naftogaz Group invests in construction of the largest LPG plant in Ukraine

Naftogaz Oil Midstream and Downstream Division is going to build a deep hydrocarbon recovery unit at Khrestyshchenske Gas Processing Department in proximity to the booster compressor station in Kharkiv region.

The Gas and Gas Condensate Processing Division (GGCPD) of the Naftogaz Oil Midstream and Downstream Division during the period from December 30, 2020 to  March 1, 2021 (inclusive) collects bids for procurement of a deep hydrocarbon recovery unit ( https://zakupki.prom.ua/gov/tenders/UA-2020-12-30-004851-c).

Expected life cycle cost of procurement is USD145.7 million. 

The unit is required for deep natural gas treatment and processing to obtain up to 99.9% of valuable components from it for the production of liquefied petroleum gas (LPG), gas condensate and stripped natural gas.

In line with the tender documentation, the winning bidder has to ensure unit manufacture and delivery to the plant site in Kharkiv region. Moreover, the winning bidder has to provide supervision over equipment construction and installation, to perform start-up and commissioning, to launch the plant and to provide personnel training.

“The construction of the Khrestyshchenske plant for LPG production will allow us to increase the share of Ukrainian petroleum products in the domestic market by 115,000 tons per year. The process will take about 2.5 years and we expect the first batch of finished products from the new plant to be delivered at the beginning of 2024,” Sergiy Fedorenko, Chief Commercial Officer of Ukrgasvydobuvannya JSC, said. 

Background:

The Gas and Gas Condensate Processing Division (GGCPD) is a structural subdivision of the Naftogaz Group Oil Midstream and Downstream Division, engaged in petroleum refining and production of liquefied hydrocarbon gas.