The Persian Gulf Petrochemical Industries Company has planned to produce 20.5 million tons of products by the end of the current Iranian year (March 2023), managing director of the company said.
“Of the total output, 10.9 million tons will be supplied to the domestic market while 9.6 million tons will be exported. The total value of our products is going to reach $13.5 billion by the yearend,” Abdolali Ali Askari was also quoted as saying by the Oil Ministry’s news agency Shana.
A total of 21 projects worth $15 billion are underway by PGPIC, which is touted as the largest petrochemical firm in Iran, he added.
“One of our most important projects will complete the value chain of various products. To do so, we will make use of the knowhow of science and technology parks in Germany, Japan and other developed countries,” he said.
The official noted that an investment of about $3 billion was being made by PGPIC to build a science and technology park in Asalouyeh, Bushehr Province.
According to reports, PGPIC earned $2.4 billion from petrochemical export in the first half of last year (March 21-Sept. 22, 2021). The company increased its operating income by 71%, consolidated operating profit by 164%, raised net profit by 148% and raised its earnings per share by 146% during the period.
PGPIC is now ranked 37th in the world, second in the Middle East after SABIC and almost unrivaled in the country in terms of sales.
The company has been first in the country for several years in such indices as sales index, market value, export volume, profitability and generation of value added.
Working Under Sanctions
It has invested over $2.3 billion in various projects in the past three years, despite sanctions imposed by the US on the company.
In May 2018, the US pulled out of the nuclear deal signed between Iran and six world powers in 2015 and later imposed new sanctions.
The US Treasury Department in June 2019 announced new restrictions on Iran's petrochemical sector that applied to PGPIC and 39 of its subsidiaries and foreign agents.
This slowed down the progress of PGPIC projects but did not dislodge it because domestic companies and manufacturers have been filling the gaps and supplying a major part of the equipment.
The company produced 28 million tons of various petrochemical products last year. With the completion of ongoing projects, the figure is expected to reach 50 million tons per year in six years.
As Iran’s largest petrochemical company with 60 subsidiaries, PGPIC accounts for around 42% of the national petrochemical production, which is about 70 million tons per year. It also accounts for 41% of Iran's petrochemical exports.
PGPIC is a public holding company that manages natural gas processing plants and chemical factories, as well as oil and polymer companies.
The petrochemical industry has played a key role in Iran’s economic growth, as it creates value-added and reduces the sale of oil and gas on which the economy has been dependent for decades.
With abundant hydrocarbon reserves and new private sector investments, Iran is working hard to maintain its global status in the key sector and broaden its scope.
A large variety of petrochemicals are produced in Iran, for which there is high international demand. They are exported to 30 Asian, European and South American countries.
Despite this, according to Ali Askari, at present, Iran's neighboring countries spend $132 billion a year on purchasing various petrochemical products, while Iran's share of these markets is very small.
However, efforts are being made to increase the share of Iran in international markets.
With the inauguration of new complexes, the number of petrochemical plants will reach 77, up 15% compared to the present.
