Petrochem Operations to Expand in CIS

Petrochem Operations to Expand in CIS Petrochem Operations to Expand in CIS

The Petrochemical Commercial Company is holding negotiations to open sales offices and expand the export of products in CIS countries and some EU members such as Spain, PCC managing director said on Saturday.

"We seek cooperation with main players (in petrochemical industry) to regain lost market share," Mehdi Sharifi Niknafs was quoted as saying by Shana.

The Commonwealth of Independent States is a regional organization formed after the breakup of the Soviet Union, whose participating countries are Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine and Uzbekistan.

"Iran's petrochemical production capacity can reach 120 million tons a year upon the completion of 67 major incomplete projects," he said, calling for the attraction of foreign investment to fast-track the projects.

Niknafs added that PCC has always maintained its overseas sales and distribution offices despite feeling the pinch of financial trade restrictions over the past few years.

Iran and six world powers reached a historic deal on July 14 in Vienna that would limit the Persian Gulf country’s nuclear program in return for removing sanctions on its energy and financial industries.

PCC makes up 35%, or more than one-third of Iran's total petrochemical exports. The company has shipped a record 19 million tons of petrochemicals in recent years.

Funding Plans

A total of 36 petrochemical projects will be developed via foreign or domestic finance, project manager of the National Petrochemical Company told Shana on Saturday.

These projects are split into two groups; 18 are under development via Chinese funding, including petrochemical units in Masjed Soleyman, Sabalan, Lordegan and Bushehr, and another 18, including Siraf and Kaveh mega projects in south Iran, are in line to receive funding from the National Development Fund of Iran.

Kaveh, the world’s largest methanol plant under construction in the Persian Gulf city of Bandar Dayyer, is expected to produce 2 million tons of methanol per annum equivalent to 7,000 tons per day.

Iran, one of the world's top oil producers, exported around $14 billion worth of petrochemicals in 2014, down from more than $18 billion in 2011.

Annual petrochemical output in the previous two Iranian years accounted for 40.5 million tons and 44.5 million tons respectively.

The prospect of lifting the sanctions has given impetus to expanding petrochemical facilities in the Persian Gulf country. The construction of 19 methanol production plants with a combined capacity of 19 million tons a year is now underway, with China financing a majority of projects.

According to official reports, Iran’s export of petrochemicals reached 2.48 million tons in March-September, bringing in $1.6 billion in revenues.