With an estimated cost of $545 million, the project is an undertaking of the National Petrochemical Company and will annually produce 120,000 tons of polypropylene, the NPC news website Nipna reported.
The project involves construction of a gas-to-polypropylene (GTPP) plant to be carried out by domestic engineers. Researchers at the Petrochemical Research and Technology Company, affiliated to the NPC, have gained the technical knowhow to build the plant.
PRTC is the mainstay for research and production of technology in all petrochemical fields. It creates tech security and contributes to economic growth by exporting know-how.
Eslamabad-e-Gharb Petrochemical Plant will be built in three phases. In the first phase, natural gas will be converted to methanol. It is estimated to produce 660,000 tons per year.
The second phase is the conversion of methanol to propylene with an annual capacity of 120,000 tons and the last phase will be the production of polypropylene with a capacity of 120,000 tons per year.
Stretching over 54 hectare in Eslamabad-e-Gharb County, the plant will create 4,500 direct jobs during the construction phase and contribute to growth in the western province namely by creating jobs.
When operational, 2.1 mcm of natural gas will be delivered to the plant a day, most of which will go to the sixth national gas pipeline from Asalouyeh and a part to Ilam Refinery.
Polypropylene -- the world's second-most widely produced synthetic plastic, after polyethylene -- is used in a variety of applications including packaging and labeling, textiles, carpets, stationery, plastic parts and reusable containers, laboratory equipment, loudspeakers, automotive parts and polymer banknotes.
The global polypropylene market was worth $126 billion in 2019. It is expected to grow at a compound annual growth rate of 12% and reach $192.3 billion by 2023.
Rising demand for thermoplastic materials contributed to the growth of the polypropylene market. Due to its unique chemical properties, thermoplastic materials can be recycled and remolded without affecting its physical properties making thermoplastic materials more useful in applications such as clothing, packaging, food and beverages.
Currently, 950,000 tons of propylene is produced per year. It is expected to reach 4.5 million tons with the launch of several projects in Mahshahr, Amirabad, Anzali and Asalouyeh.