Manufacturing the reactors of Dehdasht Petrochemical Company in Kohgilouyeh-Boyerahmad Province has registered 85% progress, managing director of the company said.
“The reactors are being manufactured by domestic experts and engineers at AzarAb Industries and will be delivered to the plant in February 2022,” Mohammad Reza Sahebnasaq was also quoted as saying by the Oil Ministry’s news agency Shana.
Located in Arak, Markazi Province, AzarAb Industries manufactures equipment used in petrochemical plants, power stations, factories and oil and gas refineries. Its main products include reactors, air preheaters, boilers, butterfly valves, water turbines, fractionating columns and pressure vessels.
In general, domestic companies and manufacturers will provide 65% of parts and equipment needed by Dehdasht Petrochemical Company.
“A total of 114 parts and equipment worth $44 million are being built by local companies,” Sahebnasaq said.
These include cooling towers, heat exchangers, air-conditioners, refrigeration units, compressors and high pressure vessels.
“Contracts have been signed with other local firms in this regard, including Petropars, Fateh Sanat Kimia and Nargan Company,” he said.
The official noted that apart from the engineering section, the plant’s construction has made 28% progress and is expected to be completed in the spring of 2023, with a total investment of $195 million.
Stretching over 102 hectares in the southwestern province and located near the West Ethylene Pipeline, the facility is to produce 300,000 tons of high-density polyethylene per year.
Dehdasht Petrochemical Company is to receive feedstock from Gachsaran Petrochemical Plant or the West Ethylene Pipeline.
WEP is 1,200 kilometers long and runs from the port city of Asalouyeh off the Persian Gulf in the south to northwest Iran. It will supply ethylene as feedstock to 12 petrochemical factories.
The pipeline has an annual capacity of 3.5 million tons of ethylene, 2.5 million tons of which comes from the major South Pars Gas Field and the rest from Gachsaran field in Kohgilouyeh-Boyerahmad.
When completed, Dehdasht Petrochemical Company will provide polyethylene as feedstock for downstream industries.
The plant’s launch will also help create jobs and increase welfare in the underdeveloped region.
Being under the license of Germany’s Basel Company, the plant will also export to international markets.
Importance of Polyethylene
Polyethylene is the world's most versatile and widely produced polymer. High-density polyethylene is used for producing plastic bottles, corrosion-resistant piping, geo-membranes and plastic lumber.
According to a report by Technavio, a leading market research and advisory company, the global polyethylene market is expected to grow by over $40 billion by 2023.
The polyethylene market is driven by global efforts to reduce plastic waste. Recycling plastics includes sorting plastic into different polymers, followed by the chipping and melting process. Soft plastics, including polyethylene bags and films, are also recycled.
The global market for recycled plastics is expected to grow at an annual rate of nearly 5% by 2023. The growth in the non-food packaging segment for recycled plastics is expected to be approximately 6% during the period.
Besides, plastic recycling helps conserve natural resources and energy. The process helps reduce the use of natural resources, such as water and petroleum, required to manufacture polyethylene bags and other products. This in turn helps manufacturers reduce production costs.
The global high-density polyethylene market was worth $106 billion in 2019 and is expected to grow annually by 8% and reach $148.5 billion by 2023.
Iran’s annual production of this polymer is 7.4 million tons and is projected to reach 12 million tons by 2022.
