Iran Emerging as Major Petrochem Producer

Iran Emerging as Major Petrochem Producer  Iran Emerging as Major Petrochem Producer

Iran is Middle East’s major petrochemical producer, an official from Moscow Chamber of Commerce and Industry said Friday.

More than 60 petrochemical projects are currently being implemented across Iran, Rajab Safarov was quoted by IRNA as saying. “Iran will become a global petrochemical heavyweight once these projects are completed,” head of the Iran Commission of the Moscow Chamber of Commerce and Industry stated. During a speech at the Gubkin Russian State University of Oil and Gas, Safarov predicted that Iran will be capable of producing 60 billion dollars worth of petrochemicals by 2020.

“For 2015, the country’s petrochemical output will exceed 25 billion dollars,” the Russian official said.

He pointed to the sanctions imposed by the US and its allies against both Tehran and Moscow, adding that, “yet Iran is offering huge incentives to foreign companies – 20 percent of total profits from investment projects.”

On Iran-Russia ties, Safarov said that bilateral trade is expected to hit $2.5 billion in 2015. “Russia can export machinery and other appliances to be used in Iran’s petrochemical complexes.”

Elsewhere, managing director of the Russian industrial company Khimtrans, Alexander Sharov, said that Iran’s ethylene production capacity is twice the amount Russia can produce.

“Currently standing at 6 million tons annually, Iranian ethylene output will increase to 10 million tons once several development projects are completed,” he added.

As its oil refining capacity increases, Iran will become a major exporter of oil products by 2017, the Russian businessman projected. Speaking at a conference in Moscow dubbed “Petrochemical Ties Between Iran and Russia”, Sharov expressed hope that petrochemical industries of both countries increase the exchanges of products, technologies and manpower.

The conference was organized by the business group Rusiran Expo, with the cooperation of the Russian magazine Iran Trade and Moscow-based bank Tempbank. The Iranian oil ministry and the energy committee of Russia’s State Duma co-sponsored the event.

Iran plans to boost its annual petrochemical output by 8.4 million tons by the end of the next Iranian calendar year (March 2016), according to an official at the Iranian Oil Ministry.

The target is to be achieved upon completion of 15 semi-finished petrochemical production units, managing director of the National Petrochemical Company (NPC), Abbas Shari-Moqaddam said. He said once semi-finished petrochemical projects are completed and a number of planned petrochemical units come on stream, the country’s petrochemical output will be increased to 180 million tons per year.

However, he did not set a specific date by which the goal was to be realized.

“The finance required to implement the projects is to be secured through attracting foreign investment,” he added.