Eleven petrochemical projects in the last fiscal year that ended in March contributed to the value chain and expanded the National Petrochemical Company’s annual production capacity by 15%, from 66 million tons in 2019 to 76 million tons, secretary general of Iran's Association of Petrochemical Industry Corporation (APIC) said.
“Of the total 17 projects scheduled to become operational in last year, 11 went on stream and six that are in different stages of construction are expected to become operational by next March 2022,” Ahmad Mahdavi was quoted as saying by IRNA.
Over $4 billion was invested in the 11 projects and should generate at least $1.5 billion a year.
Curbing export of raw materials, improving the value chain in the downstream sector, creating jobs, boosting non-oil exports and forex earnings are the primary goals of the new projects Mahdavi said.
Takht-e-Jamshid Petrochemical Plant in Mahshahr, Khuzestan Province, a potassium sulfate unit of Urmia Petrochem Plant (30m southwest of the provincial capital Urmia City), Hegmataneh Petrochemical Plant in Hamedan Province, Miandoab Petrochemical Complex in West Azarbaijan Province, Kaveh Methanol Complex near the port city of Bandar Dayyer in Bushehr Province and a catalyst production unit in Lorestan Petrochemical Complex were among the 11 projects.
“Middle East Kimia Pars company in Pars Special Economic Energy Zone in Asalouyeh, Bushehr Province, Bushehr Petrochemical Complex in Pars Special Economic Energy Zone, first phase of the olefin unit of Ilam Petrochemical Complex in western Ilam Province and one ammonia unit in Lordegan Petrochemical Company in western Chaharmahal-Bakhtiari Province added at least 3.5 million tons to NPC’s yearly output.”
Ongoing Ventures
Six projects are underway in different regions. "Estimated to cost $2 billion, they have made30-90% progress,” the APIC official said. Upon completion, the facilities will add one million ton to the present national annual output at 70 million tons.
One of the projects will boost output from Ilam Petrochemical Complex in western Ilam Province. Construction of the second phase of the olefin plant and a sulfur recycling unit are expected to be over by June, he added.
The Crystal Melamine Plant and the Urea Resins unit in Lordegan Petrochemical Company in western Chaharmahal and Bakhtiari Province have made 30% progress. Urea is mainly used as fertilizer in agriculture and as raw material by other industries.
Other projects include construction of Sadaf Petrochemical Company in Asalouyeh in Bushehr Province, which is almost halfway through and will annually produce 136,000 tons of Emulsion Styrene Butadiene Rubber (ESBR), and the Dehdasht Petrochemical Complex in Kohgiluyeh and Boyer-Ahmad.
Referring to expansion plans in Urmia Petrochemical Complex, he said melamine and poly-aluminum chloride units are to be launched by summer. Located near Urmia Petrochemical Plant, the melamine factory will have six units and employ 950 people directly and 2,900 indirectly.
Regarding other schemes, he said plans have been made to raise output in methyl amine project in Songhor in Kermanshah Province. On the last venture, he said, “The sodium hydroxide expansion plan in Mahshahr, Khuzestan Province is projected to become operational in 2022."
NPC exported 26 million tons of petrochemicals in 2020, up 13% compared to 2019. Exports included methanol, propane, butane, lightweight and heavy polyethylene, ammonia, sulfur and styrene among others.
China, the UAE, South Korea, India, Japan, Hong Kong, Indonesia, Turkey, Iraq, Egypt and Kuwait were among the main export destinations. Petrochemical revenue from exports and domestic sales exceeded $110 billion from 2013 to 2020.
“Of the total $80 billion was export and $30 billion from the domestic market.”
Unlike other major industries that have not grown over the last two years partly due to the US economic blockade, the petrochemical sector has shown significant growth.
