Iran’s Petrochem Capacity to Rise to 40m Tons by 2021

Iran’s Petrochem Capacity to Rise to 40m Tons by 2021Iran’s Petrochem Capacity to Rise to 40m Tons by 2021

Iran plans to boost annual petrochemical production capacity by 40 million tons over the next five years, boosting total output capacity to 100 million tons a year, managing director of National Petrochemical Company said on Monday.

“By 2026, the annual installed petrochemical output capacity is planned to reach 140 million tons,” Marzieh Shahdaei, who is also a deputy oil minister, was quoted as saying by Shana at a press briefing in Tehran.

Underscoring the participation of renowned international companies in Iran’s petrochemical industry after the lifting of sanctions in January, she said expanding petrochemical exports, opening up banking channels and negotiations with foreign investors are some of the implications of the nuclear deal with the six world powers.

Shahdaei noted that Iran has signed a memoranda of understanding with the French oil and gas giant Total and the German Linde Group, stressing that the agreements should pave the way for signing contracts in about a year.

“Plans call for signing MoUs with two other international petrochemical firms,” Shahdaei said without providing details.

  Collaboration With Germans

German engineering firm Siemens is among prominent European companies that have resumed cooperation with Iran after the sanctions were eased.

Mohsen Mirzaei, financial deputy at Iran’s engineering conglomerate MAPNA Group said it has commenced cooperation with Siemens in production of F-class turbines in Iran, underlining that the turbines will be installed in domestic power plants in the near future.

German companies are projected to make over $12 billion in investment in Iran’s petrochemical industry.

Linde signed a $40 million contract with Kian Petrochemical Company earlier this month to provide the Iranian firm with the much-needed knowhow and licenses to manufacture a range of petrochemical products with higher value added, namely olefin, butadiene, benzene and hydrodealkylation.

Linde Group is the world’s largest industrial gas company by market share and revenue.

According to Jamshid Sabzkar, managing director of Mobin Petrochemical Company, the company is in talks with Linde and Siemens to carry out projects and invest in Iran’s petrochemical development.

The official said negotiations are expected to lead to a major agreement with German heavyweights in the near future.

Headquartered in Berlin and Munich, Siemens is the largest engineering company in Europe with branch offices in more than 200 countries.

According to reports, 70% of Iran’s petrochemical machinery is manufactured by Linde and Siemens.

Total has been equally active in pursuit of market share in Iran’s post-sanctions business opportunities. It inked an MoU with state-run NPC in March to jointly construct a petrochemical complex in Iran.

Based on the MoU, the planned petrochemical complex will include a steam-cracker unit in a coastal area. In addition, the complex will have downstream units to sell its products in domestic and international markets.