Construction of Lordegan Petrochemical Company in the western province of Chaharmahal and Bakhtiari Province has registered 94% progress and is expected to come on stream by next fall, the managing director said.
“The urea and ammonia units will become operational within nine months with a total investment of $800 million,” the Oil Ministry news portal Shana quoted Mohsen Mahmoudi as saying.
He said that local companies have supplied a major part of the equipment for the project. The venture is financed by Chinese investors and local private companies.
Located 55km off the city of Lordegan, the petrochemical plant is gas-fired. The ammonia unit will have a production capacity of 2,050 tons and the urea unit 3,250 tons per day.
Urea production capacity is expected to rise nearly three times from current levels by the end of the Sixth Five-Year Economic Development Plan (2017-22).
Urea output is planned to reach 14.7 million tons per annum from almost 5 million tons at present after the launch of nine petrochemical plants.
The product is mainly used as fertilizer in agriculture and as raw material by other industries.
Iran plans to add almost 8.4 million tons per year to the ammonia output capacity by 2026 with the help of 21 new ammonia plants. Cost of the new factories is estimated at $2 billion.
