Iran's petrochemical complexes have produced nearly 50 million tons of goods in 11 months ending Feb. 19, of which 20 million tons worth almost $11 billion were exported to international markets, the National Petrochemical Company said in a report. According to NIPNA, the National Petrochemical Company's news agency, the country’s 57 petrochem plants manufactured about 50 million tons in this period.
Nominal output capacity stands at 62 million tons of petrochemicals per year, while actual production is expected to reach about 60 million tons by March 2018. Some 21 petrochemical complexes, located in the city of Mahshahr in the southern Khuzestan Province, have had a combined output of more than 18 million tons.
NPC plans to produce about 21 million tons of petrochemicals in the zone by the end of the current fiscal (March 20). 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 21 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.
Most Iranian 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.
Other petrochemical plants produced a total of 10.2 million tons in the period. The report added that the complexes’ output is predicted to reach 11.4 million tons by March 20.Total monthly production (Jan. 21-Feb. 19) stood at 4.8 million tons, of which 4.5 million tons, worth $2.3 million, were sold to foreign markets.
The number of petrochemical complexes is expected to increase from 43 in 2013 to 57 in 2018. The nominal output capacity has risen from 59.8 million tons to 64.9 million tons in this period. 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.
Reportedly, Iran's production accounts for 23.6% of the Middle East's total output. Iran holds some of the world's largest crude oil and natural gas reserves, but its petrochemical industry is comparatively underdeveloped.
Export Revenues
According to Reza Norouz-Zadeh, chief executive officer of NPC, completing the value-added chain in the key petrochemical industries can make a big difference in boosting the countries' export revenues.
"Currently, petrochemical commodities are sold at $1 per kilogram, but completing the value-added chain can help us sell the same quantity for $5," he said, adding that investment in this sector tops NPC's priority list.
Commenting on the petrochemical sector's main policy, the official noted that these complexes are assigned to convert low-value hydrocarbon resources like natural gas and oil to added-value products not only to meet the country's demand but also to help the country's economy thrive. Referring to petrochemical plants in Mahshahr, Norouz-Zadeh said there is a big gap between the complex's nominal output at 26 million tons and its actual production at 18 million tons, which should be bridged by attracting foreign investment and diversifying export destinations.
