LUKOIL has begun building a new pipeline to transport associated petroleum gas (APG) from the Kokuyskoye field to the LUKOIL-Permneftegazpererabotka gas processing plant.

The pipeline is 105 kilometers long, and its capacity is one billion cubic meters per year. The pipeline commissioning is scheduled for August, 2014.

The pipeline is being constructed as part of the LUKOIL corporate APG utilization program. The 2012 APG production volume by ÎÎÎ LUKOIL-Perm (a wholly-owned OAO LUKOIL subsidiary) totaled 1,143 million cubic meters. The 2013 APG utilization level in the Perm Region will come to 82% and reach 95% by 2015.

The corporate APG utilization program for the Perm Region also provides for the construction of the second line for APG processing at LUKOIL-Permneftegazpererabotka, which will increase the processing volume from 560 million cubic meters in 2013 to 1,460 million cubic meters in 2015.

May 2013 witnessed commissioning of the pipeline to transport 240 million cubic meters of APG from the LUKOIL fields located in the Usolsky, Solikamsky and Krasnovishersky districts of Perm Region to the Yayvinskaya State District Power Plant.