Construction of two petrochemical plants to produce ethylene oxide (EtO) and ethylene propylene diene monomer (EPDM) rubber will begin in Andimeshk, Khuzestan Province, director of Iranian Investment Petrochemical Group said Saturday.
“The plants will create sustainable employment and complete the petrochemical value chain,” Rasoul Ashrafzadeh was quoted as saying by ILNA.
Founded in 2011 in Tehran, the company is a subsidiary of the Persian Gulf Petrochemical Industries Company (PGPIC).
"The two ventures, estimated to cost $320 million, will be completed in two years,” Ashrafzadeh said. Upon completion the new facilities will add 120,000 tons to the National Petrochemical Company’s annual output of 60 million tons, he added.
With annual production capacity of 70,000, the EtO plant is estimated to cost $140 million and work will start in the near future.
In addition to EtO, the plant will produce ethanol amine, methyl diethanolamine and glycol ether for use in manufacturing textiles, cosmetics, pesticides, cement, gas sweeteners and detergents.
The PGPIC-affiliated plant will get ethylene from the southern port city of Asalouyeh in Bushehr Province.
Ethylene is a building block for a vast range of chemicals, from plastics to antifreeze solutions and solvents and is also used for ripening fruits.
Iran’s annual output of ethylene is 7.7 million tons. To complete the value chain NPC has issued directives for raising ethylene production in Asalouyeh.
Synthetic Rubber
Regarding the second project (EPDM rubber), Ashrafzadeh said it is estimated to cost $180 million and will produce 50 million tons of synthetic rubber used in a range of applications. EPDM is commonly used in automotive and construction industries for making seals due to its excellent resistance to environmental factors such as ozone, UV and general weathering.
In addition to the two ethylene units, the Iranian Investment Petrochemical Group has seven other projects at hand that have made between 30-90% physical progress, the PGPIC official said.
The projects are expected to add at least 600,000 tons to NPCC’s current annual output of 60 million tons. PGPIC is Iran’s largest petrochemical company with 60 subsidiaries and 11% of the capital market. Its export revenue is said to be $8-9 billion per year and according to published reports it is the second biggest petrochemical exporter in the Middle East.
Tehran is making efforts to double annual petrochemical production from around 50 million tons by opening up the sector to foreign investment. The country seeks to diversify its economy largely dependent on oil exports and make better use of its hydrocarbon resources by producing petrochemicals with higher value-added.
