Iran Petrochem Producers Look at Russia Market

“Russia needs to import petrochemicals in large volumes,” ILNA quoted Asgaroladi as saying, adding that Iranian petrochemical producers should expand their foothold in the  country under a consolidated scheme.

Pointing to Russia's insufficient petrochemical output to meet domestic demand despite holding the world’s largest gas reserves, the official said the state-owned National Petrochemical Company should take steps to introduce the ability and potential of Iranian petrochemical companies to customers in Russia.

“An effective strategy to raise exports is participating in Russia’s petrochemical exhibitions and expanding negotiations with their state and private importers,” Financial Tribune quoted the official as saying.

Ali Mohammad Bosaqzadeh, director of production control at the NPC, also said an increasing number of global customers are ordering larger volumes of Iranian  petrochemicals.

"In addition to Iran’s traditional petrochemical customers, such as China and India, other  countries have placed higher orders for a wide range of petrochemicals," he said without elaboration, the official portal of the NPC quoted him as saying.

"Some domestic petrochemical producers are shifting their focus to Russia," he added.

After the removal of international curbs against Iran’s key trade and energy sectors early last year, bilateral trade between Iran and Russia jumped by almost 70% in 2016, reaching $2.2 billion, according to official reports.

Iran produced 50.61 million tons of petrochemicals in fiscal year 2016-17 that ended in March, of which 20.3 million tons, worth $9.5 billion, were exported, government data shows.

According to published reports, Iran holds 38% of the petrochemical market in the Middle East, but only produces 4.8% of the world's petrochemicals despite sitting on some of the world's largest crude oil and natural gas reserves.