The Persian Gulf Petrochemical Industries Company is carrying out projects that are in different stages of construction, the company’s managing director said.
“PGPIC does not take projects that are not economically viable and all projects that are in progress will benefit the country,” Tasnim News Agency quoted Jaffar Rabei as saying.
The company’s projects are underway while it is saddled with tough US sanctions. In May 2018, the US pulled out of the nuclear deal signed between Iran and six world powers in 2015 and later imposed new sanctions.
The US Treasury Department announced last June new restrictions on Iran's petrochemical sector that applied to PGPIC and 39 of its subsidiaries and foreign agents.
This slowed down the progress of PGPIC projects but did not dislodge it because domestic companies and manufacturers have been filling the gaps and supply a major part of the equipment.
“One of the major projects that is near completion is Bid Boland Gas Refinery in Khuzestan Province that is expected to start production in a month,” Rabei said.
Located in Behbahan County in the southwest, Bid Boland is the Middle East’s largest refinery with an annual production capacity of 10.4 million tons of methane, 1.5 million tons ethane, 1 million tons propane, 600,000 tons gas condensates and 500,000 tons butane.
With the inauguration of the mega project that cost $3.5 billion, production of sweet gas and other gases will increase to feed petrochemical plants. Expansion of exports is also anticipated.
Ammonia, Urea Units
Another project is the ammonia and urea units at Hengam Petrochemical Company, in Hengam Island in the Persian Gulf, whose construction has made 75% progress.
The ammonia unit will annually produce 726,000 tons and nominal capacity of the urea unit is 1.155 million tons per year. The units are expected to come on stream by 2021.
“Construction of Lordegan Petrochemical Company in the western province of Chaharmahal and Bakhtiari Province is almost over and it will begin producing ammonia and urea soon,” the official noted.
The ammonia unit will have a production capacity of 2,050 tons and the urea unit 3,250 tons per day. The main use of ammonia and urea is in the production of various fertilizers in agriculture and as raw material by other industries.
“The methanol production unit of Apadana Petrochemical Plant, in southern Bushehr Province, has registered 40% progress and will come on line in 2021,” Rabei said.
With annual production capacity of 1.650 million tons, the unit will cost $511 million and its entire output will be for export.
According to the PGPIC managing director, one plant in Gachsaran in Kohgilouyeh-Boyerahmad Province and another on in Ilam Province will come on stream within two years.
As Iran’s largest petrochemical company, PGPIC accounts for 37% of the total national petrochemical production, which is 66 million tons per year. It also accounts for 41% of Iran's petrochemical exports that generated $10 billion in 2017.
Iran is striving to diversify its economy and make better use of its hydrocarbon reserves by producing petrochemicals and higher value-added goods. Improvement and optimization of petrochemical plants is underway to boost productivity.
A large variety of petrochemicals (350 types) are produced in Iran, for which there is high international demand. They are exported to 30 Asian, European and South American countries.
Iran has invested $53 billion in the industry and total investment will reach $93 billion by 2025.
According to plans, annual petrochemical production capacity would cross 100 million tons by 2021 and reach 130 million tons four years later.
The petrochemical sector is expected to generate more than $25 billion by 2022, and $37 million by 2025, compared to $17 billion now.
