To double the production capacity of polymer products, Tabriz Petrochemical Company in East Azarbaijan Province has launched a polypropylene production unit under the license of China’s Shenzhen ENCO Company, TPCO’s managing director said.
“Aimed at completing the value chain of propylene, the plant was completed over three years at an estimated cost $20 million,” Siavash Derafshi was also quoted as saying by the National Petrochemical Company’s news portal.
The new unit has an annual capacity of 30,000 tons of polypropylene, he added, noting that TPCO will also start the annual production of 310,000 tons of high-density polyethylene (HDPE) in 2023.
When the under-construction unit becomes fully operational, the production capacity of polymer products in the complex will double.
Located in northwest Iran, TPCO annually produces 840,000 tons of various products, including raw polymers, polyethylene, polystyrene and acrylonitrile butadiene styrene.
Almost 40% of the plant's output are sold domestically and the rest is exported to clients in Asia and Europe. It is built on 380 hectares and its main feedstock and raw materials include naphtha, LPG, mineral oil and other chemicals provided by Tabriz and Tehran refineries, as well as petrochemical companies in southern Iran.
The company set a record in polyethylene production in the first three months of the current fiscal year (started March 21).
The polyethylene unit produced 35,194 tons of high- and low-density polyethylene, which was up 23% compared with the same period of last year.
Referring to the role of petrochemicals in earning revenues for the country that is hit by US sanctions, Derafshi said about 85% of non-oil exports pertain to the petrochemical industry.
Domestic Sales
In the first 10 months of the current fiscal year, the company’s domestic sales exceeded 300,000 tons worth $290 million and exports reached 93,000 tons worth $116 million.
Polyethylene is the world's most versatile and widely produced polymer. HDPE is a thermoplastic polymer produced from monomer ethylene. It is used for producing plastic bottles, corrosion-resistant pipes, geo-membranes and plastic lumber.
HDPE is also used for producing PE-100 pipes that have higher durability with applications in oil, gas, water and wastewater systems.
Propylene is a colorless gas with a naturally pungent smell. It is a key commodity in the petrochemical industry and can be transformed into value added products like polypropylene and create jobs in the downstream petrochemical sector.
Polypropylene – the world's second 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.
Launched in 1992, TPCO’s petrochemical products include raw polymers, polyethylene, polystyrene and various grades of a thermoplastic polymer known as acrylonitrile butadiene styrene, or ABS.
"TPC products are exported to 35 countries, mostly in Asia," Derafshi said.
Most of Iran’s petrochemical facilities are concentrated in the port cities of Asalouyeh and Mahshahr that border the Persian Gulf coast.
Iran's petrochemical sector has grown significantly over the past decade. Once fully operational, the West Ethylene Pipeline will have the capacity of supplying 3.5 million tons of ethylene, 2.5 million tons of which would come from South Pars Gas Field in the Persian Gulf and the rest from Gachsaran in Kohgiluyeh-Boyerahmad Province.
Iran’s petrochemical sector has grown significantly and devised policies to complete the value-added chain in the key sector.
The rapidly expanding petrochemical industry meets most of the domestic need, thanks to the quality and diversity of products. Export volumes are also significant.
According to plans, Iran intends to increase annual petrochemical output from the current 90 million tons to 130 million tons in five years.
Propylene is a strategic commodity in the petrochemical industries. It can be transformed into value added products like polypropylene and create jobs in the downstream petrochemical sector.
