Iran and Russia have firm intentions for long-term cooperation in the petrochemical sector for unleashing shared potentials.
Dmitry Semenov, director of the International Cooperation Department in Russia’s Energy Ministry, made the statement during the visit of Morteza Shahmirzaei, managing director of the National Petrochemical Company, at the 13th International Exhibition of Machinery and Materials for Plastics Industry, also known as Rosplast 2023, in Moscow on June 7, IRNA reported.
Referring to a memorandum of understanding signed last month between Iranian petrochemical officials and Russia’s oil authorities in Tehran, he noted that Russian firms have developed keen interest in joining hands with their Iranian counterparts to utilize one another’s capabilities.
“The two nations plan to draw on each other’s knowledge and experience to complete the value chain in the petrochemical industry,” he added.
The NPC chief expressed hope that effective collaboration with Iranian scientists can help Russia produce much-needed materials and equipment instead of importing them from other countries.
Semenov praised Iran’s impressive achievements in the petrochemical sector under the US sanctions, noting that Iranian companies have successfully implemented major plans in the key industry.
Close to 70 petrochemical complexes with an annual production capacity of 90 million tons are operating in Iran.
About 26 million tons of products are exported and about 10 million tons are sold in the local markets. The rest is supplied to refineries and petrochemicals as feedstock, he added.
Abundant Oil, Gas Reserves
Access to abundant oil and gas reserves is a unique advantage for the development of Iran’s petrochemical industry and Russian companies are welcome to use this opportunity and participate in Iran’s petrochemical project, Shahmirzaei said.
“One billion cubic meters of gas are extracted from gas fields in Iran on a daily basis and the country’s crude oil production capacity is about 4 million barrels per day, some of which are used as feedstock in the petrochemical industry. I invite companies present at the exhibit to invest in petrochemical projects as well as in oil and gas development programs,” he added.
Referring to the huge oil and gas reserves in the country, the NPC chief said Iran has more than 159 billion barrels of oil reserves and about 33 trillion cubic meters of gas in place.
The country has 5,600 kilometers of coastlines in the north and south, and its numerous ports have facilitated the export and import of various products in the oil, gas and petrochemical sectors, as well as other industries.
The presence of well-known Iranian petrochemical holdings and knowledge-based companies in the exhibition indicates Iran's willingness to develop cooperation in this field with other countries, especially Russia.
“Some Iranian catalysts are being used in Russian petrochemical complexes and they have also placed new orders to purchase domestically-made catalysts,” the NPC chief said.
“This is the result of negotiations held since March with Russian delegations for the export of Iranian catalyst to Russia.”
In 2022, NPC signed deals with Russian private petrochemical firms, including SIBUR, to supply catalysts. SIBUR is one of the world’s fastest-growing petrochemical players and Russia’s leading polymer and rubber manufacturer.
Iranian Catalysts
Referring to the quality of Iranian catalysts, the NPC chief said, “Russian firms could not use Chinese catalysts that were ineffective in the reactors of petrochemical complexes. However, Iranian catalysts have proved to be of high quality and competitive with the best in the world.”
Shahmirzaei pointed to the indigenization of catalysts as one of the strategies of the Oil Ministry and stressed that the localization of all catalysts has been planned.
Of the 87 types of catalysts used in the petrochemical industry, 60 have been indigenized in collaboration with knowledge-based companies.
The indigenization of all catalysts will help save about $1.15 billion annually, which would otherwise be spent on importing them.
By the end of the current Iranian year (March 2024), 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.
The use of indigenized technical knowhow, especially in the field of catalysts, reduces cost in the petrochemical industry by 30%.
Speaking at Rosplast 2023, Iran’s Ambassador to Russia Kazem Jalali referred to mutually beneficial relations between the two countries and said that because of their rich oil and gas reserves, Iran and Russia have a good opportunity to develop cooperation in these sectors.
Rosplast is a leading exhibition that showcases modern equipment, various materials and technologies for recycling and production of plastic goods. The constantly growing exposition and a unique target audience create favorable conditions for interaction between business partners, business development and contribute to the development of polymer industry in Russia. The exhibition has been held annually since 2010.
