Several petrochemical and refining projects are underway in Gachsaran County in Kohgilouyeh-Boyerahmad Province to make the county an energy hub in western Iran, the provincial governor said.
“The construction of Gachsaran Petrochemical Company is near completion and will become operational soon,” Seyyed Ali Ahmadzadeh was also quoted as saying by Naftema website.
Upon its launch, the complex will have a capacity of 1 million tons of ethylene per year, he added.
The plant will receive ethane as feedstock from Bidboland Persian Gulf Gas Refinery and turns it into ethylene, which will be sent to Mamasani, Kazeroun and Boroujen petrochemical companies as well as Dehdasht and Gachsaran polymer plants. Gachsaran Plant will also produce C3+ and hydrogen.
Regarding the construction of Gachsaran Polyethylene Plant in the vicinity of Gachsaran Petrochemical Company, Ahmadzadeh said the project had earlier faced problems but they have been addressed now and its implementation will accelerate.
This polyethylene plant with a capacity of 300,000 tons of high density polyethylene per year is constructed on a land area of 119,000 square meters.
As per the schedule, the project will become operational next year. The feed and ancillary services for this project will be provided by Gachsaran Petrochemical Complex.
Ethylene is a colorless gas produced on an industrial level using the steam-cracking process of ethane and naphtha. It is flammable in nature and commonly used as feedstock by chemical manufacturers to produce chemicals such as polyethylene, ethylene oxide, ethylene dichloride and ethylene benzene.
The gas is also used for the ripening of fruits on a bulk level. Additionally, in petrochemical industries, ethylene is used as a refrigerant and a fuel gas in welding and cutting processes.
Global Ethylene Market
The global ethylene market has reached approximately 150 million tons in 2021 and is expected to grow at a CAGR of 4.09% until 2035.
The primary driver of the global ethylene market is the synthesis of polyethylene. In 2021, approximately 54% of global ethylene was utilized by the polyethylene industry. Various industries employ polyethylene due to its flexibility, durability, lightweight nature and resistance to moisture.
The global ethylene market is expected to reach about 260 million tons by 2035.
Based on demand, the Asia Pacific grabbed more than 40% of the global ethylene market in 2021. Based on production, Asia Pacific is taking the lead among all the other regions. It has been estimated to produce more than 30% of the global ethylene production of 2021.
Gachsaran Petrochemical Company will play an important link in the value chain to turn associated petroleum gases to polymer products. More than 2,500 people are currently working on the project that will be completed at a cost of $1 billion.
One of the advantages of the project is that about 80% of the parts and equipment used in the plant are made by domestic manufacturers.
“The permit for the construction of Gachsaran Petro-Refinery with a daily feed of 105,000 barrels of oil has been issued,” Ahmadzadeh said.
Petro-refineries produce both fuels and raw materials for petrochemical companies. Such plants have boosted the profitability and development of petro-refineries in developed countries.
“In addition to this project, a small refinery with a capacity of 10,000 barrels of oil per day will be constructed in Padok region, on the border of Gachsaran and Dehdasht,” he added.
