Iran's 57 petrochemical complexes produced nearly 55 million tons of goods in 2017, of which 17.5 million tons, worth $9.2 million, were sold to domestic companies.
According to NIPNA, the National Petrochemical Company's news agency, some 21 petrochemical complexes, located in the city of Mahshahr in the southern Khuzestan Province, had a combined output of more than 19.6 million tons although it was expected to reach 21 million tons.
The nominal production capacity of petrochemical plants in Mahshahr amounts to 25.6 million tons.
NIPNA noted that production from 16 complexes in Pars Special Economic Energy Zone in Asalouyeh in Bushehr Province hit 22.8 million tons in the period. 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 11.1 million tons in the period, NIPNA noted. Reportedly, the country's petrochemical complexes produced nearly 4.5 million tons of goods between Feb. 20 and March 20.
MEG Export
Morvarid Petrochemical Company in Asalouyeh, Bushehr Province, exported $400 million worth of mono-ethylene glycol (MEG) to international markets in 2017, Gholamreza Jokar, the company’s managing director, said.
MEG is mainly used for two purposes, as a raw material in the manufacture of polyester fibers and for antifreeze formulations, resins and engine coolants.
The official noted that 95% of the MEG output are exported to Asian countries, mainly China, India and Turkey, stressing that the company is making efforts to claim a share of the European market.
"The company's other products comply with foreign standards and plans are in place to raise its ethylene production by 100,000 tons per year, expanding the firm’s ethylene output capacity to 600,000 tons in the current fiscal that started on March 21," he said.
According to the official, talks with major European firms have come to fruition and contracts to buy the much-needed licenses and equipment have been concluded. Pointing to shortage of ethane in the plant, Jokar said, "If the complex were to be provided with enough feedstock, most of which is transferred from the giant South Pars Gas Field, the plant will be able to operate at full production capacity."
Morvarid Petrochemical Company supplies all its ethylene output to a 1,200-kilometer pipeline—known as the West Ethylene Pipeline—that runs from Asalouyeh in the south all the way to West Azarbaijan Province in the northwest.
Commenting on the company's expenditure, Jokar said, "Close to $7 million were expended to purchase domestically-manufactured pipes, valves and pumps to encourage local producers improve their quality."
