Khorasan Petrochemical Company in North Khorasan Province plans to implement a development project for increasing output, managing director of the company said.
“Currently, about half a million tons of urea fertilizer is produced annually in the company and if its annual gas feedstock increases by 500,000 cubic meters, the urea production capacity will double and reach 1 million tons a year,” Alireza Babazadeh was also quoted as saying by IRNA.
He hoped that with the help of provincial officials, the required gas will be supplied to the company in the near future.
The annual production of urea in Iran is about 5 million tons, around half of which is sold domestically and the surplus is exported. Output is planned to reach 14.7 million tons per annum by 2023 after the completion of several projects.
A subsidiary of Iran's National Petrochemical Company, KPC is the largest chemical producer in north and northeast Iran.
Located in Bojnourd County, KPC has been producing urea, ammonia and melamine for over two decades. Its daily production capacity includes 1,500 tons of urea, 1,000 tons of ammonia and 60 tons of melamine.
Urea is widely used in the agricultural sector as animal feed additive and fertilizer.
Ammonia is used in making fertilizers and explosives, where methanol serves as a source for other chemicals.
Melamine is used in manufacturing utensils, plastic products, paper, paperboard and industrial coating, among other things.
KPC exports to several countries, including India, Indonesia, Turkey, Turkmenistan, the UAE and Ukraine.
GTPP Unit
Babazadeh also noted that the construction of a mini gas-to-polypropylene (GTPP) unit will soon start at the company.
When fully operational, the unit will have a production capacity of 1.65 million tons of polypropylene per year, he added.
It will create 10,000 direct and indirect jobs during the construction of the northeastern province.
Propylene is a colorless fuel gas with a naturally pungent smell. It is a key commodity in the petrochemical industry, which can be transformed into value added products like polypropylene and create jobs in the downstream petrochemical sector.
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.
Currently, 980,000 tons of propylene are produced in Iran annually. However, domestic demand is much higher and plans are underway to increase production to 4.5 million tons with the launch of several projects across the country.
The global polypropylene market was worth $122.7 billion in 2019. The major factor driving demand for polypropylene is the rising use of the chemical in the packaging sector and nonwoven fibers. As a result, the polypropylene market is projected to grow to $226.8 billion by 2030.
Rising demand for thermoplastic materials contributed to the growth of 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.
The largest region in the polypropylene market is Asia-Pacific, and it is also expected to witness the highest compound annual growth rate during the forecast period, as a result of advancements in rigid and flexible packaging materials and the increasing number of PP production plants in the region.
