The demand for Iran's liquefied petroleum gas (LPG) exceeds supply, said the managing director of Bandar Imam Petrochemical Co. (BIPC), Tasnim news agency reported.
"LPG reserves are selling out and cargo ships are delaying their departure from the Persian Gulf as demand for LPG has surpassed supply," said Reza Amiri on the sidelines of IranPlast 2014 exhibition in Tehran Permanent Fairground.
BIPC exports LPG to China, India and some Mediterranean countries. The nominal production capacity of BIPC is more than 1.6 million tons of LPG, with the company operating at 70 percent of capacity due to short supply of natural gas liquids (NGL).
BIPC was initially set to receive 120,000 barrels of feedstock per day, but on average received 84,000 barrels a day in the March-June period this year, consequently operating at 70 percent capacity.
BIPC exported over $600 million worth of petrochemicals in the said period.
"To better provide BIPC with feedstock, we will finance around 70 percent of the construction expenses of the NGL-3200 factory," he said.
The construction of NGL-3200 had a 6 percent progress over the past 6 months, but the project is expected to be complete by 2017.
The amount of investment in NGL-3200 totals $1.3 billion, with BIPC funding 70 percent via loans from banks and the National Development Fund.
China Top Buyer
China is the biggest buyer of BIPC productions, Amiri pointed out adding that several LPG cargoes have been shipped to India as well.
Restrictions on export of LPG have been lifted and domestic and international oil tankers are ready to distribute Bandar Imam's LPG from the Persian Gulf, he asserted.
