Petrochem Production Reaches 16.5 Million Tons in 3 Months

EghtesadOnline: Petrochemical production in the first three months of the fiscal 2021-22 reached 16.5 million tons, director of Production Control Department at the National Petrochemical Company said.

News ID: ۷۸۶۵۶۱

29 June 2021

“The output in the 90-day period indicates a 7% rise compared to the same period last year when production stood at 15.5 million tons,” the Oil Ministry’s news website also quoted Jalal Mirhashemi as saying.

“Annual petrochemical production capacity is 70 million tons and is expected to reach 90 million tons by next March when new plants open in Bushehr, Kohgilouyeh-Boyerahmad, West Azarbaijan, Kermanshah and Khuzestan provinces.”

Besides boosting production, Iran is striving to indigenize equipment and parts used in the key industry.

After the US imposed new sanctions in May 2018, the sector started facing problems regarding the production of selected petrochemicals. However, companies started collaboration with domestic engineers and knowledge-based firms to indigenize parts and equipment.

In February, 70 contracts worth $300 million were signed with knowledge-based companies to accelerate the indigenization process.

Iran has now gained the technical knowhow and self-reliance in the production of a vast range of petrochemicals, including catalysts.

Catalyst consumption is rising and local companies are improving their R&D in the tight race to keep up with the times and not fall behind foreign competitors.

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.