5-Year Plan to Raise Petrochem Output Worth $40b

5-Year Plan to Raise Petrochem Output Worth $40b 5-Year Plan to Raise Petrochem Output Worth $40b

Iran’s annual petrochemical output will be worth $40 billion by 2021, which marks the end of the sixth five-year development plan (2016-21), the oil minister announced on Wednesday.

“To reach the goal, Iran needs an investment of $50 billion,” Bijan Namdar Zanganeh was also quoted as saying by ISNA.

Zanganeh was speaking in the inaugural ceremony of the 10th International Exhibition of Plastics, Rubber, Machinery and Equipment (Iran Plast 2016) that will be open to public until April 17. The exhibit hosts around 400 domestic and 500 international companies from 25 countries, including from Russia, France, China, Turkey, the UAE, Pakistan, South Africa and Australia, with petrochemical heavyweights from Germany, Italy and Austria having reserved the largest pavilions in the exhibition.

In addition, 18 trade delegations involving about 200 businessmen from Iraq, India, Azerbaijan, Sri Lanka and Kenya, among others, are scheduled to visit Tehran to test the waters for new business opportunities.

The minister noted that the aim of petrochemical industry is to reduce sales of raw materials and complete the supply chain.

“In the current year [started March 20], the status of feedstock supply is desirable, especially for ethane and liquefied petroleum gas that are sufficiently available,” he said.

Zanganeh added that 14 million tons of liquefied gas, which come from the recently exploited units of South Pars, will be supplied to petrochemical units.

First Vice President Es'haq Jahangiri also attended the ceremony at Tehran's International Permanent Fairground.

Jahangiri expressed optimism that Iran would become the largest producer and exporter of petrochemicals in the world.

Marzieh Shahdaei, deputy oil minister for petrochemical affairs, also said Iran’s annual polymer production capacity is currently over 7.4 million tons, which is due to reach 12 million tons by the end of the five-year plan (2016-21), Shana reported.

“Iran Plast is one of the most specialized international exhibits in the region,” she said. Referring to three polyethylene units in Sanandaj, Mahabad and Khorramabad, which are to become operational in the present Iranian year, Shahdaei said the projects will add 1.2 million tons to the country’s production capacity.

The country is developing 55 major projects, with 10 production units expected to go on stream by March 2017, adding at least 7 million tons to the annual output.

With a nominal production capacity of 60 million tons, Iran's petrochemical output reached 44 million tons in the last Iranian year.