NPC Encouraging Construction of New Companies to Expand Production

Seventeen petrochemical projects are to come on stream over the next two years raising annual output capacity to more than 70 million tons, said Marzieh Shahdaei, head of the National Petrochemical Company.

“Seven projects are expected to go on stream by the end of the current fiscal that started on March 21. Moreover, plans call for building 10 more companies by the end of 2018, which will boost annual nominal petrochemical capacity to 72 million tons," Shahdaei was quoted as saying by Shana on Sunday.

Phase 3 of Pardis Petrochemical Company with a capacity of 1.7 million tons a year will come on stream during the next two weeks.

The NPC chief added that Marjan Petrochemical Company—aka the 7th Methanol Project— in Phase 2 of South Pars in Asalouyeh as well as Bushehr Petrochemical Complex Phase 1 with an annual production capacity of 3 million tons, including methanol, olefins, ethylene glycol, light and heavy polymers and acetic acid, will go on stream by the yearend.

"A total of 52 petrochemical plants with production capacity of around 60 million tons a year are now operational. Annual sales (domestic and overseas) amount to $15 billion," she noted, adding that actual petrochemical production exceeded 51 million tons in the previous fiscal

Takht-e Jamshid Pars Petrochemical Co, mono-ethylene glycol (MEG) production unit of Morvarid Petrochemical Plant, polystyrene unit of Entekhab Petrochemical Plant and Phase 2 of Kavian Petrochemical Plant in Asalouyeh were inaugurated by President Hassan Rouhani on Sunday.

The plants increase annual petrochemical production capacity by 2 million tons, worth an estimated $2 billion.

Shahdaei said that 22 petrochemical projects are under development in Mahshahr at an estimated cost of $1.3 billion.

Asked about the target to produce 120 million ton of petrochemicals annually by 2022, she said fulfilling the goal requires at least $70 billion in investments that should come from foreign sources.

"Iran's strategic position in the region, large hydrocarbon reserves and access to international waters are among the attractions of our petrochemical sector for foreign investors."

Shahdaei noted that not only is the main natural gas feedstock available as more phases of the giant South Pars Gas Field come on stream, but also most petrochemical companies are being developed in the vicinity of international sea lanes to facilitate access to global markets.

"Since President Rouhani took office 13 projects have become fully operational with an investment of $4 billion." The president's tenure ends next month and he is seeking a second term in the May elections.

Oil Minister Bijan Namdar Zanganeh said on Sunday that Tehran needs to offer robust laws and regulations for investment to attract foreign firms.