Large Scope for Iran Petrochemical Sector

EghtesadOnline: The US sanctions on Iran’s oil sector has had no influence on petrochemical exports because the mechanism defined for exporting petrochemicals differs from crude oil export, the secretary general of Association of Petrochemical Employers Unions said.

News ID: ۷۴۷۱۹۰

30 April 2019

“Petrochemical exports continue as usual and with new petrochemical plants coming on stream later this year, this industry will show higher output numbers along with increase in exports,” IRNA quoted Ahmad Mahdavi-Abhari as saying.

With the completion of petrochemical plants, namely Marjan in Asalouyeh, the first phase of Bushehr Petrochemical Complex and Kaveh Methanol Company in Bushehr Province, Iran’s annual petrochemical output will surpass 63 million tons.

Last week the United States said it would not renew waivers that allowed eight countries to buy Iranian oil without facing US sanctions, according to Financial Tribune.

The current set of waivers – issued to China, Greece, India, Italy, Japan, South Korea, Taiwan and Turkey – expire on May 2.

Regarding the export destinations of petrochemicals, Mahdavi-Abhari said: “Many countries buy our petrochemicals, including neighboring states, China, India, Southeast Asia and Europe.”

In the March 2018-19 fiscal, Iranian companies exported $14.1 billion worth of petrochemicals. Official data has it that petrochemicals account for 32% of Iran’s non-oil exports.

Petrochemical is Iran's most important industry after oil and gas. The National Petrochemical Company hopes to lift output capacity to 120 million tons per annum by 2022.

The petrochemical industry has played a key role in domestic economic growth as it creates value-added and reduces the sale of oil and gas on which the economy has been dependent for decades.

With abundant hydrocarbon reserves and new private sector investments, Iran is working hard to maintain its global status in the key sector and broaden its scope.