Kavian Petrochemical Complex’s output will rise by 25% in 2019 compared to the current production volume of 1.6 million tons, managing director of the company said.
“As soon as more South Pars Gas Field phases in the Persian Gulf become operational by March 2019, more natural gas will be supplied to the complex, one of Iran’s largest ethylene producers,” Ramazan Oladi was also quoted as saying by NIPNA, the National Petrochemical Company’s news agency.
According to the official, the plan to raise output to 2 million tons depends on the delivery of more ethane, as the feedstock for ethylene, to the plant.
“In view of the imminent launch of the remaining South Pars phases [11, 13, 14, 22-24], the mega project is predicted to have excess ethane production in two years,” he said.
Iran’s annual ethane production is currently 4.5 million tons, which will reach 6 million tons in a year and 10 million tons in three years. Domestic demand for ethane amounts to 5.5 million tons currently.
“Kavian’s output amounted to 1.2 million tons in 2017 due to lack of feedstock,” Oladi said.
KPC is located in Pars Special Economic Energy Zone in Asalouyeh, Bushehr Province.
Ethylene is the building block for a vast range of chemicals, from plastics to antifreeze solutions and solvents, and is also used in the agriculture sector for ripening fruits.
With an estimated global output of over 150 million tons in 2016, ethylene is the most commercially produced gaseous compound.
The official noted that the implementation of the plan will help Kavian supply other petrochem plants, namely Ilam, Qadir, Arvand, Amir Kabir and other complexes in Mahshahr Petrochemical Special Economic Zone, with much-needed ethylene as feedstock.
“Kavian’s total ethylene production is consumed domestically,” he said, adding that the complex feeds a string of petrochemical producers that are located along the West Ethylene Pipeline—a 1,200-kilometer pipeline that runs from Asalouyeh in the south all the way to West Azarbaijan Province in the northwest.
Asked about speculations over talks with French engineering company Technip S.A. in the post-sanctions era, Kavian’s CEO said that in spite of the lifting of sanctions against Iran about two years ago, there has been no contact between the companies.
Oladi noted that Kavian has pursued plans to renovate its facilities in the last two years.
Iran’s annual output of ethylene stands at about 7.3 million tons, 2 million tons of which are produced in Kavian.
According to Gholamreza Jokar, the Morvarid Petrochemical Company’s managing director, feasibility studies on a plan to raise ethylene production by 150,000 tons per year have been carried out.
Plans are in place to bring the plant’s output capacity to 650,000 tons by the end of the current fiscal in March.
“Over the past two years, we have managed to increase the actual production of Morvarid Complex in Asalouyeh, Bushehr Province, to 75% of the nominal capacity by boosting the plant’s feedstock,” he added.
Tehran aims to diversify its economy that is largely dependent on oil export revenues and make better use of its hydrocarbon reserves by producing petrochemicals with higher value-added.
