To help complete the urea value chain in Lordegan Petrochemical Company in western Chaharmahal-Bakhtiari Province, an engineering, procurement and construction contract was concluded between Iranian Investment Petrochemical Group and Panah Sanat Part Company in Tehran on Wednesday.
As per the agreement signed between Rasoul Ashrafzadeh, managing director of IIPG, and Nourmohammad Panahi, the head of PSPC, the latter is obliged to provide the former with equipment and technical expertise to develop the Crystal Melamine Unit at Lordegan Petrochemical Plant, the Oil Ministry’s news portal Shana reported.
"The deal is aimed at drawing on the experience of local manufacturers and promoting domestic products,” Ashrafzadeh said.
According to the official, the development of Crystal Melamine Plant is estimated to cost $100 million.
The main feedstock (urea) of the plant will be supplied by the units of Lordegan Petrochemical Complex that will become operational in 2023.
Upon the completion of the new facility, under construction over a 10-hectare plot next to urea and ammonia units of Lordegan Petrochemical Complex, it will add at least 30,000 tons to the National Petrochemical Company’s annual output of 65 million tons.
Established in 2001, in addition to the procurement of major equipment, PSPC specializes in designing and building petrochemical plants.
“IIPG is expanding operations and will contribute to the value chain of petrochemicals,” Ashrafzadeh said.
Projects Underway
Founded in 2011 in Tehran, IIPG is a subsidiary of the Persian Gulf Petrochemical Industries Company and has seven projects underway in different regions.
"The ventures, estimated to cost $1 billion, have made 30-90% physical progress,” he said.
“Upon completion, the new facilities will roughly add 600,000 tons to the National Petrochemical Company’s current annual output of 50 million tons.”
One of the projects will boost output from Ilam Petrochemical Complex in the western Ilam Province.
Ashrafzadeh noted that two olefin plants and a sulfur recycling unit in the region have started pilot production.
Ethylene production capacity in the complex will reach 350,000 tons per annum. Ilam Petrochemical Company manufactures a wide range of products, 80% of which are exported.
Ethylene is the building block for a vast range of chemicals, from plastics to antifreeze solutions and solvents, and is also used for ripening fruits.
Other projects include the construction of Sadaf Petrochemical Company in Asalouyeh in Bushehr Province, which is almost halfway through and will produce 136,000 tons of Emulsion Styrene Butadiene Rubber, and the Dehdasht Petrochemical Complex in Kohgilouyeh-Boyerahmad.
Referring to development plans in Urmia Petrochemical Complex, Ashrafzadeh said melamine and poly-aluminum chloride plans are to be launched in summer. Located near Urmia Petrochemical Plant, the melamine factory will have 6 units and employ 950 people directly and 2,900 indirectly.
Regarding other schemes, he said plans have been made to raise output in methylamine project in Songhor in Kermanshah Province. In the last venture, Ashrafzadeh said, “The sodium hydroxide expansion plan in Mahshahr, Khuzestan Province, is projected to become operational in 2022."
The Oil Ministry’s news agency also quoted Mohsen Mahmoudi as saying that the ammonia unit of Lordegan Petrochemical Company has started production.
“The unit will annually produce 677,000 tons of ammonia,” he said.
Lordegan Petrochemical Company, a subsidiary of the Iranian Investment Petrochemical Group, is located 55km off the city of Lordegan. When operational, it will create 2,600 direct and indirect jobs.
The main use of ammonia is in the production of fertilizers and materials such as ammonium nitrate, ammonium sulfate, mono ammonium phosphate, diammonium phosphate, urea and other chemical fertilizers.
PGPIC is Iran’s largest petrochemical company with over 60 subsidiaries and almost 11% of Iran’s capital market. Its export revenue is said to be $8-9 billion per year.
According to published reports, PGPIC is the second biggest petrochemical exporter in the Middle East.
