Ten petrochemical projects worth about $9 billion are being developed in Iran by the Persian Gulf Petrochemical Industries Company, the company's deputy for planning and development announced.
"The projects have made between 10-90% physical progress," Rasoul Ashrafzadeh was also quoted as saying by NIPNA, the National Petrochemical Company's news service, on Tuesday.
PGPIC's top investments include the Bid Boland Gas Refinery project (65% progress) in the city of Behbahan, Khuzestan Province, Gachsaran in Kohgilouyeh-Boyerahmad Province (45% progress) as well as plants in the cities of Ilam, Asalouyeh, Lordegan and Dehdasht, all located in the western and central southern regions.
"Bid Boland, Ilam and Lordegan plants will become operational next year," Ashrafzadeh said.
The next fiscal year starts on March 21, 2018.
The new ventures are part of plans to boost installed petrochemical output capacity and propel the economy of less-developed regions.
The PGPIC official said each plant is estimated to create 300-600 jobs.
Most Iran's petrochemical infrastructures are in southern regions close to the Persian Gulf where water supply is less of a concern and proximity to international waters makes transport and shipment more cost-effective.
PGPIC is Iran’s largest petrochemical company with over 60 subsidiaries, owning more than 11% of Iran’s capital market. Its exports are estimated at $8-9 billion per year.
According to published reports, PGPIC is the second biggest petrochemical exporter in the Middle East.
Tehran is making efforts to double annual petrochemical production capacity from around 60 million tons by opening up the sector to foreign investors. It has said over $70 billion in foreign investments are needed for 80 major petrochemical projects.
The country aims to diversify its economy that is largely dependent on oil export revenue and make better use of its hydrocarbon reserves by producing petrochemicals with higher value-added.
The petrochemical sector is Iran’s second-most valuable industry after oil and gas.
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.
Petrochemical complexes produced 35.6 million tons of products during March 21-Nov. 21.
Tehran earned $9.55 billion from petrochemical exports last year, official data show.
Petrochemical consignments went mostly to Asia, Europe and South America.
Exports reached 14.6 million tons in eight months, which earned revenues worth $7.39 billion.
According to NIPNA, 21 complexes in the city of Mahshahr in Khuzestan Province produced nearly 13.2 million tons in the eight-month period. Plans are in place to produce about 21 million tons of petrochemicals in the zone by the end of the current fiscal.
The 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.
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