Petrochemical companies in Iran are doing relatively well as production and exports have been of the ascending order in the past six years, managing director of the National Petrochemical Company said.
"Production has increased by 5.8 million tons a year since 2013," Behzad Mohammadi was quoted as saying by IRNA.
Close to $5.4 billion was invested in the sector in the past six years. Giving a breakdown, he said six years ago NPC’s annual output was near 23 million tons and has now reached 58 million tons -- up 152%.
Of the total output (58 million tons), 35% or about 20 million tons is bought by local companies to be converted into value-added products and the balance is exported.
The NPC official added that production is expected to reach 100 million tons in 2021.
“Twenty eight development projects (costing $17 billion) are being completed and will raise NPC’s output by 70%.”
Regarding exports, he said NPC generated $12 billion in 2013. This volume was boosted by 40% in the next six years to $17 billion a year.
The upward trend create jobs for one million people, especially in the southern regions where most petrochem plants are located.
Petrochemical industries have played a key role in the economic growth as it creates value-added and reduces “the sale of crude oil and gas on which the economy has long been dependent.”
It is noteworthy that NPC production in 1997 was six million tons worth $500 million.
“So long as petrochemical plants have access to stable supplies of feedstock (natural gas and condensates), nothing can stop their growth,” he said, adding that expansion of the South Pars Gas Field in the Persian Gulf has helped the sector expand.
South Pars is being developed in 24 phases, of which 12 became operational over the last six years.
Product Variety
In related news, Masoud Hassani the head of Pars Petrochemical Co. in Asalouyeh said his company is gradually expanding its basket of value-added goods by adding new items like styrene monomer, an industrial chemical and important raw material for making modern plastics and synthetic rubbers used in a variety of everyday products.
Expansion of styrene production lines will help raise annual revenue ($450 million) by $300 million. Moreover, there will be no need to import the raw material.
A total of 55 petrochemical companies across Iran annually produce 58 million tons for the domestic and international markets.
Most petrochemical plants are in Mahshahr in southwestern Khuzestan Province and Assalouyeh in the Persian Gulf, where water supply is less of a concern and proximity to international sea lanes makes transport and shipment cost effective.
Iran produces a large variety of petrochemicals (about 350 types), for which there is high international demand.
“We have 30 export destinations in Europe and Asia. There are several hundred customers worldwide for our products,” Mohammadi noted.
The petrochemical sector is Iran’s second most important industry after oil and gas. It has played a key role in economic growth as it creates value-added and reduces the sale of oil and gas on which the economy has been dependent for decades.
With abundant hydrocarbon resources and private investments, Iran is striving to maintain its global status in the key sector and broaden its scope despite the unilateral US sanctions.
