Rouhani Says Petrochem Revenues Will Rise 47% in Two Years

President Hassan Rouhani announced this on Monday addressing investors and businesses involved in the petrochemical industry in Tehran, IRNA reported.

“As more petrochemical projects come on stream gradually, the present at $17 billion annual earnings will rise by 47% in two years,” Financial Tribune quoted Rouhani as saying.

The sector’s annual output was 55 million tons in 2013 and increased by 20% in the last six years to reach 65 million tons, he added. 

Production is projected to exceed 80 million tons in 2021.

The National Petrochemical Company has announced that improvement and optimization of 12 petrochemical plants are underway in different provinces.

Plans call for raising output in Bandar Imam Petrochemical Complex, Shahid Tondgouyan Petrochemical Complex in Bandar Mahshahr, Takht-e-Jamshid Petrochemical Plant in Mahshahr Special Petrochemical Economic Zone in Khuzestan Province and Urmia Petrochemical Plant in West Azarbaijan Province by 150,000 tons, 26,000 tons, 50,000 tons and 40,000 tons a year, respectively.

Development of other ventures namely Kavian Petrochemical Plant in Asalouyeh, Nouri and Jam petrochemical companies in the southern Bushehr Province as well as Morvarid and Mobin petrochemical complexes in the southern port city of Asalouyeh will also contribute to revenues in the key sector.

Value Chain

In related news, Ebrahim Valadkhani, managing director of Shazand Petrochem Co. in the central city of Arak, Markazi Province, announced that to complete the value chain in the petrochemical sector an agreement was signed with Tabriz Petrochemical Company in East Azarbaijan Province to manufacture disposable syringes.

“Shazand produces low value-added polymer grade hexane (PGH) that will be converted into special polymers suitable to produce disposable syringes in Tabriz,” he said.

PGH costs $500 per ton, but when converted to high performance polymer called COP (cyclic olefin polymer), it can be sold at $1,200 per ton, he noted.

This is the first time that this type of polymer is produced with the help of domestic companies. 

In the past PGH was mainly sold to neighboring states, namely the UAE, where it was used to manufacture poor quality gasoline and other petrochemicals.

“Tabriz Petrochem Complex has now invested $40 million to develop new technology to convert PGH into special polymers needed for the medical and other industries.”

Valadkhani went on to say that polymers needed to produce syringes were imported from South Korea which now is not possible due to the US sanctions.

Referring to the company’s revenues, he noted that in 2018 the firm sold $400 million worth of goods in international markets.

A part of the company’s products (poor quality gasoline) is exported to Afghanistan, he said.

The firm’s production in 2018 reached 1.8 million tons, most of which was sold to petrochemical companies to be converted into value added goods.

Unlike most petrochemical plants, Shazand’s feedstock is not natural gas. It mostly receives liquefied feedstock such as naphtha.