Petrochemical development projects worth $3 billion are underway in the western Ilam Province, managing director of the National Petrochemical Company said.
“The ongoing initiatives will help complete the value chain in the key sector, which is a top priority of NPC,” Morteza Shahmirzaei was also quoted as saying by the Oil Ministry’s news agency Shana.
Giving a breakdown on the ventures, he said the first project pertains to Dehloran Petrochemical Complex that is being built on a 200-hectare plot at an estimated cost of $1 billion.
The project has progressed by 40% and includes the construction of an ethylene unit with a capacity of 620,000 tons per year, a propylene unit with a yearly output of 140,000 tons and a pyrolysis gasoline unit with an annual production capacity of 37,000 tons.
Referring to the second project (Dehloran natural gas liquid or NGL 3100), Shahmirzaei noted that the feedstock for Dehloran Petrochemical Complex will be supplied by NGL 3100 that has already entered the pilot phase.
NGL 3100 will collect and process associated petroleum gas from oilfields in Ilam and Dezful, and is supposed to be fed with as much as 6 million cubic meters of gas per day, he added.
The official noted that the much-needed feedstock for NGL 3100 is supplied with the help of four gas pressure regulating and metering stations in Ilam Province.
Giving a breakdown, the NPC chief said Dehloran, Paydar, West Paydar and Cheshmeh Khosh gas pressure stations will deliver 3 million, 1 million, 500,000 and 1.5 million cubic meters of gas respectively to NGL 3100.
According to Shahmirzaei, the project is being financed by the Oil Industry Pension Fund Investment Company.
The Oil Industries, Engineering and Construction Company has been commissioned to develop the project by 2023.
The gas processing unit, the development of which was halted due to financial constraints, is being completed at an estimated cost of $2 billion.
Technical Capability
Referring to OIEC's technical capability in undertaking natural gas liquid projects, he said NGL 3100 is the fifth plant undertaken by OIEC.
NGLs are a group of hydrocarbons, including pentane, ethane, propane and butane. These are differentiated from one another by the number of carbon atoms in their molecular chain.
They have a wide variety of applications ranging from specialized fuels (e.g., propane, butane) to petrochemical feedstock for making products like plastic and fertilizers.
Commenting on Dehloran gas refinery's advantages, Shahmirzaei said the initiative will help cut APG in the region — a major source of pollution, as large amounts of harmful emissions are released in the environment through gas flaring.
"As soon as the plant goes on stream, 1,170 barrels of gas condensates, 2 mcm of sweet gas and 3 mcm of sour gas will be produced per day," he added.
Founded in 2004, Ilam Petrochemical Company is an olefin plant located in western Iran, which produces a wide range of products, including ethylene, high density polyethylene, crystal melamine, ammonia sulfate and sulfuric acid.
According to Hassan Najafi Semnani, managing director of Ilam Petrochemical Company, the production capacity of the company’s high-density polyethylene unit has increased by 10% in 2022 compared to a year ago.
The HDPE unit, which was launched in 2013, initially had a production capacity of 40 tons per hour of high-density polyethylene.
“Relying on the knowhow and expertise of young engineers at the complex, the capacity has risen to 44 tons per hour now.”
He also noted that efforts are being made to further boost the unit’s output to 45 tons per hour.
HDPE is also used for producing PE-100 pipes that have higher and long-term durability with applications in oil, gas, water and wastewater systems.
A recent study by the strategic consulting and market research firm BlueWeave Consulting revealed that the global HDPE market was 54.7 million tons in 2021 and is projected to reach 78 million tons by the year 2028, growing at a CAGR of 5.6% over the analysis period of 2022-28.
