Iran to Launch 5 Petrochem Plants by March

EghtesadOnline: Five petrochemical projects are expected to go on stream by the end of the current fiscal year in March 2017, the head of National Petrochemical Company said.

News ID: ۷۷۳۱۰۴

12 January 2017

"Phase 2 of Kavian Petrochemical Complex with an annual production capacity of 1 million tons and Phase 2 of Morvarid Petrochemical Company whose annual output stands at 550,000 tons, in addition to Takhte Jamshid and Entekhab petrochemical complexes, each with an annual production capacity of 250,000 tons will become operational by mid-February," Marzieh Shahdaei was quoted as saying by Mehr News Agency.

She added that plans include the completion of Phase 2 of Pardis Petrochemical Company with an annual production capacity of 1 million tons by the yearend.

Asked about other ongoing projects, Shahdaei said three units in Bushehr Petrochemical Complex and Marjan Methanol Plant—aka 7th Methanol Project—in Phase 2 of South Pars in Asalouyeh will become operational next year, Financial Tribune reported.

Commenting on Iran's annual installed petrochemical capacity, the official added that the capacity stands at 64 million tons, although plans are in place to boost it by 40 million tons over the next five years and reach 100 million tons a year.

“By 2026, the annual installed petrochemical capacity is planned to reach 140 million tons,” she said.

Underscoring the participation of renowned international companies in Iran’s petrochemical industry after the lifting of sanctions in January, she said expanding petrochemical exports, opening up banking channels and negotiations with foreign investors have resulted from the nuclear deal with six world powers.

Shahdaei announced that Iran has signed memoranda of understanding with the French oil and gas giant Total and the German Linde Group, stressing that the agreements should pave the way for contracts in about a year.

“Plans call for signing MoUs with two other international petrochemical firms,” Shahdaei said without providing details.

The NPC chief noted that Iran exported 10 million tons of petrochemicals, worth $9 billion, in the first 10 months of the current fiscal year.

"The lion's share of outbound petrochemical consignments went to Asia, Europe and South America," she said, adding that export of petrochemicals saw a rise in terms of weight compared with the same period of the previous year, but declined in value.

According to Shahdaei, 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.