The National Petrochemical Company's short- and long-term goals to raise output cannot be attained unless value chain completion in the lucrative sector is accelerated with the help of local catalysts, managing director of Petrochemical Research and Technology Company said.
“Of the 87 types of catalysts used in the petrochem industry, 60 have been indigenized by PRTC, in collaboration with knowledge-based companies,” ISNA also quoted Majid Daftari as saying.
By the end of the current Iranian year [March 2023], eight more will be localized while the remaining 19 groups are expected to be developed by 2025 when Iran will no longer need to import catalysts, he added.
Cracking, isomerization and reforming are the most important examples of catalytic reactions in petrochemical sector.
Cracking is the name given to breaking up large hydrocarbon molecules into smaller and more useful bits, while isomerization and reforming are processes used to improve the octane rating of gasoline for modern engines.
Daftari noted that unlike refinery catalysts, those used in the petrochemical industry are very diverse and the volume of demand is high.
Due to the multiplicity of catalysts used in petrochemical complexes, a significant part is imported, but the US sanctions have made it difficult to purchase them from international markets, hence local firms should redouble efforts to indigenize as many catalysts as possible.
A catalyst speeds up a chemical reaction but is not consumed by it. Most solid catalysts are metals or oxides, sulfides and halides of metallic elements and semi-metallic elements such as boron, aluminum and silicon.
“The domestically-produced catalysts are worth $123 million,” he said.
According to the official, Iranian companies annually use at least 23,000 tons of catalysts.
Catalyst consumption is rising and local companies are improving their R&D to not fall behind foreign competitors.
Referring to potentials for exporting catalysts and their knowhow, Daftari said, “Negotiations have been held with some neighboring countries, including Russia, by the private sector and we hope to begin export in the near future.”
PRTC is the mainstay for research and production of technology in all petrochemical fields. It creates tech security and contributes to economic growth by exporting know-how.
Downward Trend
The import of petrochemical products has witnessed a downward trend over the last two years and over 30 projects have been planned to maintain the downtrend in the coming years, Morteza Shah-Mirzaei, managing director of NPC, said.
“Petrochemicals worth $2 billion were imported in 2020, which decreased to $1.5 billion in 2021 and NPC’s imports are projected to be around $1 billion in 2022. With the help of 33 development projects, NPC’s import will reduce by 70%,” he added.
The official noted that with the implementation of these projects, NPC seeks to diversify the range of petrochemical products and help complete the value chain in the petrochemical industry.
Petrochemical plants across the country received 40 million tons of feedstock, including condensates, ethane, natural gas and naphtha, in the last fiscal year.
Development projects, which need an investment of $3.3 billion, will help produce 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.
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.
Shah-Mirzaei said the export of petrochemical products is projected to generate $18 billion in revenues for NPC by the end of the current fiscal year (March 2023).
“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,” he said.
With the inauguration of new complexes over the next four years, the number of petrochemical plants will reach 77, marking a rise of 15%.
