Iran’s petrochemical output increased by 7% over the past six months compared to the same period a year ago, the head of production control at National Petrochemical Company said.
“Since the beginning of the current fiscal year in March, Iran produced over 23 million tons of petrochemicals in 47 complexes,” Ali Mohammad Bosaqzadeh was quoted as saying by Shana news agency on Monday.
“Although many complexes have undergone overhauls in the first half of the year, petrochemical companies have registered a significant production rise,” he said.
The official expected Iran's petrochemical industry to maintain growth in production and exports through next March when the Iranian financial year ends.
Nominal petrochemical production capacity is close to 60 million tons a year, with annual output at 40.5 million tons, 44.5 million tons and 45.6 million tons over the past three years respectively. The volume is expected to exceed 50 million tons this year. Moreover, the country exported 18.8 million tons of petrochemicals worth $9.6 billion last year.
Iran is planning to raise the share of petrochemical products in annual non-oil exports to 35% from the current 33%. It exported 1.8 million tons of petrochemical products in the past month worth $569 million.
According to an NPC report published on Saturday, of the total petrochemical output in five months to August 21, which amounted to more than 21 million tons, petrochemical complexes in Asalouyeh accounted for 10 million tons and complexes in Mahshahr produced 7.1 million tons. Companies in other zones produced 4 million tons.
The report said domestic consumption of petrochemicals stood at over 1.2 million tons over the fifth month, of which 550,000 tons were net sales and 660,000 tons were sales to other complexes. Until mid-August, the country exported a total of 8.7 million tons worth $3.6 billion.
FDI Plans
Iran has been seeking foreign investment in its huge petrochemical sector after international restrictions imposed over the nuclear dispute were lifted in January.
At an international conference in Tehran last year, NPC envisaged plans to attract $70 billion in foreign investment in the petrochemical market that was largely shut to outsiders during the past few years due to the international sanctions.
It also plans to raise petrochemical output to 180 million tons a year by 2025, nearly three times the current level.
Recent political and economic openings have reignited the interest of foreign companies in Iran, namely in its energy and petrochemical industries.
Ali Seifian, member of the board of Masjed Soleyman Petrochemical Industries Co., said in August that a consortium of South Korean companies is negotiating to invest in a petrochemical project in the city of Masjed Soleyman in southern Khuzestan Province.
"We are planning to turn the rural district of Zilaei into a major petrochemical hub in Khuzestan," he said.
The project is estimated to cost $1.5 billion, but financing can be raised to $5 billion.
