To help complete the value chain in the petrochemical sector, Miandoab Petrochemical Complex in West Azarbaijan Province became operational on Thursday, managing director of the plant said.
"With annual capacity of 175,000 tons, the plant converts ethylene to higher value-added products namely heavy polyethylene, linear and light polyethylene," Ahad Mahdavi was quoted as saying by IRNA.
Built over 22 hectares and costing $120 million, the plant was completed in seven years, and Bakhtar Petrochemical Company -- the main shareholder (70%) -- acquired the licenses from Japan's Mitsui & Co., Ltd. Company, he said. The other stakeholder is Poushineh Methanol Company (30%).
The plant will get 140,000 tons of ethylene per year via the West Ethylene Pipeline.
This pipeline is 1,700 kilometers long and runs from the port city of Asalouyeh off the Persian Gulf in the south to the northwest and has the capacity to transfer 2.5 million tons of ethylene per annum.
It supplies feedstock to 11 petrochemical complexes, including Mahabad, Mahshahr, Andimeshk, Lorestan, Kermanshah, Hamedan, Kurdestan and Miandoab.
Ethylene is the building block for a vast range of chemicals, from plastics to antifreeze solutions and solvents, and is also used ripening fruits.
Annual output of ethylene in Iran is about 7 million tons, of which 2 million tons is injected into the West Ethylene Pipeline. With global output near 185 million tons in 2018, ethylene is the most commercially produced gaseous compound. A survey of the global production of ethylene indicates it could be around 290 million tons over the next ten years.
Iran’s petrochemical industry is largely concentrated in Asalouyeh and Mahshahr in the south. However, in more recent years petrochemical plants have also been built across the western belt
Iran’s petrochemical facilities are concentrated in Asalouyeh and Mahshahr in the south. However, in the past few decades new petrochemical plants have come on stream, particularly across the western belt, as part of efforts to help lift local economies.
“The plant's cooling tower requires 30 liters of water per second for functioning that will be supplied by West Azarbaijan Regional Water Company.”
In addition to ethylene, the plant will be supplied with 6,000 cubic meters of natural gas (as feedstock) per hour with the National Iranian Gas Company to produce other commodities like methanol. The site is equipped with a 500-kilovolt substation.
Iran’s petrochemical sector alone consumes 9% of the domestic natural gas production and generates 35% of non-oil export revenues.
Domestic Catalysts
According to Mahdavi, unlike other petrochemical units that need foreign catalysts to convert ethylene to polyethylene, Miandoab Petrochemical Company uses domestically-manufactured catalysts.
Referring to petrochemical plants use of catalysts, Mahdavi said the global catalyst market is worth $18 billion of which 2.2% is used in Iran.
The local petrochemical sector uses $400 million worth of catalysts a year most of which is produced locally. Iranian companies use at least 23,000 tons of catalysts a year. Private companies produce 20,000 tons covering most of the demand.
In related news, IRNA quoted Oil Minister Bijan Namdar Zanganeh as saying that petrochemical firms in Iran produced 31 million tons in 2019 and exports generated $9.5 billion.
Of the total output, 23 million tons were exported and the balance was sold to local firms, he added.
“Sixteen development projects are being undertaken, of which 12 costing as estimated $12 billion should come on stream in the current fiscal.”
Kaveh Methanol Company in Bushehr Province, Bidboland Persian Gulf Gas Refinery in Behbahan County, Khuzestan Province, Masjed Soleyman Petrochemical Company's ammonium and urea units in Khuzestan Province, Hegmataneh Petrochemical Plant in Hamedan and Kangan Petro Refining Complex -- a major petrochemical and refinery project in Bushehr Province -- are slated to become operational in 2020.
“Upon completion, the projects will add 30% (or 20 million tons) to NPC’s annual output that presently is 66 million tons.”
Iran’s petrochemical industry has been growing since the late 1980s. Production has increased 22-fold and the number of companies has increased nine times.
