The olefin unit of Ilam Petrochemical Complex will start producing ethylene next week, the managing director said.
“After launch, a part of the production will be supplied to the West Ethylene Pipeline (WEP) from August,” Hassan Najafi Semnani was quoted as saying by the National Petrochemical Company news portal Nipna.
Ilam Petrochemical Company manufactures a wide range of products.
Annual ethylene production capacity of the company in the western Ilam Province is 450,000 tons.
A petrochemical-derived monomer, ethylene is the building block for a vast range of chemicals, from plastics to antifreeze solutions and solvents. It is also used for ripening fruits.
Iran’s annual output of ethylene is about 7.3 million tons, of which 2 million tons is pumped into the West Ethylene Pipeline.
With several projects underway, the country is set to become one of the largest producers of highly-demanded petrochemicals: ethylene and propylene.
Petrochem complexes, namely Kavian, Morvarid, Jam and Arya Sasol, have been commissioned to increase ethylene output gradually, in which case Iran’s annual output is projected to reach 17 million tons.
Global ethylene output was 185 million tons in 2018, indicating again that it is the most commercially produced gaseous compound.
A projection of global production capacity of ethylene shows the volume could be around 290 million tons in ten years.
West Ethylene Pipeline is 1,700 kilometers long and runs from the port city of Asalouyeh off the Persian Gulf in the south to the northwest.
It supplies ethylene as feedstock to 12 petrochemical factories along the way including in Mahabad, Mahshahr, Andimeshk, Lorestan, Kermanshah, Hamedan, Kurdestan and Miandoab.
The pipeline’s annual capacity is 3.5 million tons, 2.5 million tons of which comes from the major South Pars Gas Field and the rest from Gachsaran field in Kohgilouyeh-Boyerahmad Province.
The domestic petrochemical sector has grown significantly and has is pushing ahead with projects to complete the petrochemical value-added chain.
Petrochemical firms supply most of the domestic needs, thanks to the diversity of products. Export is significant and rising rapidly.
Iran’s petrochemical infrastructure is largely based in the southern regions close to the Persian Gulf where water supply is less of a concern and proximity to international waters makes shipment more cost-effective.
According to published reports, Iran will invest $40 billion in the petrochemical sector to raise annual output to 133 million tons in five years from about 66 tons now.
It is forecast that the key sector will generate $37 billion annually by 2025.
