The ammonia unit of Lordegan Petrochemical Company in western Chaharmahal and Bakhtiari Province has started production, the managing director said.
“The unit can produce 677,000 tons of ammonia per year,” the Oil Ministry news agency Shana quoted Mohsen Mahmoudi as saying.
Construction of the urea unit of the plant is over and it will come online next month, with an annual production capacity of 1,073 tons.
Lordegan Petrochemical Company is a subsidiary of Iranian Investment Petrochemical Group, located 55km off the city of Lordegan, and $800 million has been invested in the two units so far.
When fully operational, it will have a positive impact on the local economy, including jobs for 2,600 people directly and indirectly, Mahmoudi said.
The main use of ammonia is in the production of fertilizers; ammonia is used directly as a fertilizer and in the production of materials such as ammonium nitrate, ammonium sulfate, mono ammonium phosphate, diammonium phosphate and urea and other chemical fertilizers.
Iran plans to add almost 8.4 million tons per year to ammonia output capacity by 2026 with the help of 21 new plants. Cost of the new factories is estimated at $2 billion
Urea is mainly used as fertilizer in agriculture and as raw material in other industries.
Urea production 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 5 million tons now after the launch of nine petrochemical plants.
Iran plans to add almost 8.4 million tons per year to ammonia output capacity by 2026 with the help of 21 new plants. Cost of the new factories is estimated at $2 billion.
4 Projects
Directing manager of Iranian Investment Petrochemical Group has announced that the company is constructing four other petrochemical complexes.
“The new projects will create 12,000 direct jobs,” Rasoul Ashrafzadeh told IRNA on Thursday, without saying when they will be over.
They include Urmia Melamine Plant in West Azarbaijan Province and Ilam Polypropylene Complex in Ilam Province as well as Crystal Melamine Plant and Urea Resins Complex in Lordegan.
Ilam Polypropylene Plant will have six units and is expected to become operational by 2022, Ashrafzadeh said, adding that the plant will have installed production capacity of 150,000 tons, Ashrafzadeh noted.
Urmia Melamine Plant is to be launched by the private sector. Located near Urmia Petrochemical Plant, the melamine factory will entail 6 units and is expected to employ 950 people directly and 2,900 others indirectly.
Lordegan Crystal Melamine Plant will include seven units and create employment for over 9,000 people. Lordegan Urea Resins Complex will also comprise seven units.
Iran produces 66 million tons of petrochemicals (about 350 varieties), for which there is high international demand.
The petrochemical sector plays a key role in economic growth as it creates value-added and reduces export of oil and gas on which the economy has been dependent for decades.
With abundant hydrocarbon resources, the rising global challenges to fossil-fuel use, problems associated with CO2 emissions and climate change, and above all years of sanctions on its oil sector has compelled Iran to rethink and play its destined role in the international petrochemical market.
