The development of Kharg Petrochemical Company, the only petrochemical producer on Kharg Island 25 kilometers off the Persian Gulf coast, is underway as planned, the head of the company said.
“The project, which is estimated to become operational in 2024 will increase the plant’s annual methanol output by 1.4 million tons per year to reach 2 million tons,” Bahman Behzadi was also quoted as saying by the Oil Ministry’s news portal.
The license to provide the plant’s feedstock has been obtained and close to $200 million have so far been invested in the venture, he added.
Behzadi said a part of the feedstock will come from Sixth Iran Gas Trunkline that currently transfers gas from South Pars to southern and western regions, namely Hamedan and Kermanshah provinces.
“Iranian Offshore Oil Company, affiliated to the National Iranian Oil Company, is transferring flare gas from Forouzan offshore complex to Kharg, which not only prevents the burning of associated petroleum gas but also reduces environmental pollution and improves feedstock supply to KPC to help raise methanol output,” he said.
KPC’s main products include methanol, propane, butane, naphtha and sulfur.
Kharg Island has a reputation for being the artery of exporting Iran's crude oil, the country's most important export commodity. Iran's oldest oil export facility handles over 90% of its crude and condensate shipments.
Iran produces 66 million tons of petrochemicals (about 350 varieties), for which there is high international demand.
The petrochemical sector plays a key role in economic growth, as it creates value-added and reduces oil and gas export, on which the economy has been dependent for decades.
With abundant hydrocarbon resources, rising global challenges to fossil-fuel use, problems associated with CO2 emissions and climate change and years of sanctions on its oil sector has compelled Iran to rethink and play its destined role in the international petrochemical market.
Iran's petrochemical producers are largely concentrated in two coastal regions in the Persian Gulf: Asalouyeh in Bushehr Province, home to Iran's gas and petrochemical facilities, and the city of Mahshahr in Khuzestan Province.
