The rise in ethane production in Iran over the last eight months has helped petrochemical plants raise their ethylene output by 420,000 tons – reaching about 7.7 million tons.
According to Iran's Association of Petrochemical Employers Union, annual ethane production capacity was 3.8 million tons in 2014 and increased to 6.1 million tons by the end of the last fiscal in March.
Ethane output is projected to reach 8 million tons per annum by the end of the current fiscal (March 2019).
Ethane is among the highest value-added products used as feedstock in petrochemical plants.
The union said domestic demand for ethane is 5.5 million tons and thus the surplus can be sold to international markets.
In the recent past, when ethane supply was not enough, petrochemical companies were assigned a monthly quota, yet the quotas are gradually eliminated as more South Pars Gas Field phases in the Persian Gulf are becoming fully operational.
Each ton of ethane, as the principal element in manufacturing petrochemicals, namely ethylene can generate at least $1,000 in export revenue.
Due to the sharp increase in ethane production, polyethylene output in Kavian Petrochemical Complex in the Pars Special Economic Energy Zone in Asalouyeh, Bushehr Province, has witnessed a 26% rise over the past eight months compared to the same period last year, the union added.
The company’s annual polyethylene output of 1.25 million tons indicates a 150,000-ton increase compared to 2017.
National Petrochemical Company data shows that polyethylene production in Kermanshah, Lorestan, Mahabad and Kurdistan Plants reached 194,000 tons, 160,000 tons, 184,000 tons and 180,000 tons respectively in that year.
Polyethylene is an important part of packaging materials. The rising demand from food and beverage industry for the high-quality packaging material is apparently lifting the global polyethylene market.
According to Goldstein Research, a business consulting and market research firm with roots in the US and Asia, the global polyethylene market is anticipated to reach $19.8 billion by the end of 2024 -- a compound annual growth rate of 4.8%.
