The export of petrochemical products is projected to generate $18 billion in revenues for the National Petrochemical Company by the end of the current fiscal year (March 2023), managing director of NPC said.
“Close to 43 million tons of petrochemical commodities are expected to be produced in 67 petrochemical companies, of which 33 million tons will be exported,” the Oil Ministry’s news portal also quoted Morteza Shah-Mirzaei as saying.
The NPC chief added that the total earnings of the lucrative sector (exports and domestic sales) will peak at $25 billion by March 2023, as the industry’s production capacity has reached 90 million tons per year.
“Petrochem plants across the country received 40 million tons of feedstock, including condensates, ethane, natural gas and naphtha, in the last fiscal year, which was equivalent to 1 million barrels of crude per day that will rise to 2 million barrels per day in 2025,” he added.
With the inauguration of new complexes over the next four years, the number of petrochemical plants will reach 77, marking a rise of 15%.
Shah-Mirzaei noted that “studies show we are facing a shortage of propylene [200,000 tons] and if no measure is taken, the deficit will grow to 700,000 tons in five years”.
Propylene is the second most important feedstock in the petrochemical industry after ethylene. It can be transformed into value added goods like polypropylene and create jobs in the downstream sector.
Propane Dehydrogenation
According to the official, executive operations for the construction of a propane dehydrogenation (PDH) plant at the Persian Gulf Bidboland Gas Refinery in Khuzestan Province started on Friday.
“The project seeks to produce 600,000 tons of propylene from 700,000 tons of propane per year,” Mahmoud Aminnejad, the head of the refinery, said.
Estimated to cost $950 million, the plant’s annual revenues will stand at $650 million.
PDH is a promising catalytic technology utilized for the conversion of propane into propylene, which is involved in many petrochemical applications.
In addition to propylene, the PDH plant produces other byproducts, mainly hydrogen.
As the demand for propylene in the country is higher than output, plans are underway to increase its production to 4 million tons a year from the current 1 million tons per year in three years.
The primary source of propylene is from cracking naphtha and other liquids such as gas oil and condensates to produce ethylene. However, propane can also be used to produce propylene.
Propylene is a colorless gas with a naturally pungent smell. Although similar to propane, it has a double bond that gives it a combustion advantage, i.e., it burns hotter but is non-toxic.
The gas can be transformed into value added products like polypropylene and create jobs in the downstream petrochemical sector.
According to Aminnejad, Persian Gulf Bidboland Gas Refinery also plans to complete the polypropylene chain.
Polypropylene – the world's second-most widely produced synthetic plastic, after polyethylene - is used in a variety of applications, including packaging and labeling, textiles, carpets, stationery, plastic parts and reusable containers, laboratory equipment, loudspeakers, automotive parts and polymer banknotes.
Reducing Imports
Annually, about $1.5 billion of petrochemical products are imported, but following the implementation of 33 development projects, their import will decline by 70%, Hassan Abbaszadeh, NPC’s director for planning and development, said.
With the implementation of these projects, NPC also seeks to diversify the range of petrochemical products and help complete the value chain in the petrochemical industry, he added.
Abbaszadeh noted that development projects, which need an investment of $3.3 billion, will use the remaining feedstock to produce about 20 new commodities, including acrylic acid and propylene oxide.
Currently, 50 projects are underway across the country to increase petrochemical output and help develop the downstream sector.
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.
