Iran Petrochemical Production at 35 Million Tons in 8 Months

Iran's petrochemical output crossed 35 million tons in eight months, as the country faces a steep climb toward its petrochemical output target for the fiscal 2017-18.

According to NIPNA, the NPC’s official news agency, 57 petrochemical complexes produced 35.6 million tons of products during March 21-Nov. 21.The country’s total nominal production capacity is expected to reach 72 million tons by March 2018, while actual production target is set at 60 million tons.

NIPNA said 21 complexes in the city of Mahshahr in Khuzestan Province produced nearly 13.2 million tons in the eight-month period.  Plans are made to produce about 21 million tons of petrochemicals in the zone by the end of the current fiscal. Nominal production capacity of petrochemical plants in Mahshahr amounts to 25.6 million tons.

Production from 16 complexes in Pars Special Economic Energy Zone in Asalouyeh hit 15.1 million tons in the period. The nominal capacity of Asalouyeh complexes is estimated at 32.7 million tons per year, with actual production expected to surpass 26 million tons.

Other petrochemical complexes produced a total of 7.3 million tons in eight months. The report added that the complexes’ output is predicted to reach 11.4 million tons by March. Total monthly production (Oct. 23-Nov. 21) stood at 4.5 million tons. Domestic sales of the petrochemical industry in March-November reached 11.4 million tons worth $5.56 billion. Exports reached 14.6 million tons, which earned revenues worth $7.39 billion.

Tehran earned $9.55 billion in revenues from petrochemical exports last year, official data show. Petrochemical consignments went mostly to Asia, Europe and South America.

Iran holds some of the world's largest crude oil and natural gas reserves, but its petrochemical industry is comparatively underdeveloped. Tehran says its new petrochemical ventures require over $70 billion in investments that should mostly come from foreign sources, such as France's Total and Royal Dutch Shell that are reportedly close to sealing billions of dollars worth of licensing and construction deals in the Iranian petrochemical market.

Petrochemical is Iran's most important industry after oil and gas. NPC hopes to lift nominal output capacity to more than 120 million tons per annum by 2022, the end of Iran's Sixth Five-Year Economic Development Plan.