Petrochemical output reached close to 27.5 million tons over six months, the National Petrochemical Company said in a report.
"Production of petrochemicals and polymers in the 57 petrochem complexes in the first six months of the current fiscal (March 21–September 22) has increased by 2% compared to the same period a year ago," Qodratollah Farajpour, production manager of NPC was quoted as saying by NIPNA.
According to the official, many petrochemical units are being overhauled, as is usual practice, the figures are promising.
"NPC will boost production to higher levels in the next six months because fewer units will need major repairs," he said, noting that Maroun petrochem plant in Mahshahr, Khuzestan Province, Arya Sasol Polymer Company in Assalouyeh, Bushehr Province, Fanavaran Petrochem in Imam Khomeini Port as well as the Khark complex, in Kharg Island in the Persian Gulf are among plants that had either completely halted production or were operating at lower capacity.
Farajpour seemed satisfied with the numbers but did not say if the output was all for export or was also being delivered to local factories, most of which cannot function unless they receive raw materials made by their peers.
It is good news that petrochemical output has risen by 2%, but the problem is that plants that must buy raw materials — methanol, hexanol, ortho-xylene, phenol, styrene, ethylene glycol and vinyl chloride — from major domestic petrochemical factories have been forced to shut down in past few months.
The primary reason behind the closures is the unprecedented instability in the foreign exchange market has lured producers into exporting much higher volumes instead of selling to domestic firms almost entirely dependent on their products.
Farajpour said nominal petrochemical output capacity stands at 62 million tons per year, while actual production is expected to reach about 60 million tons by March 2019.
Most petrochemical producing companies are based in the southern regions close to the Persian Gulf where water supply is less of a concern and proximity to international waterway makes transport and shipment cost-effective.
