Dehdasht Petrochemical Industries Company and Nargan Company, as the contractor, signed an agreement on building a heavy polyethylene production plant in the city of Dehdasht, Kohgilouyeh-Boyerahmad Province.
The plan, with a production capacity of 300,000 tons of polyethylene per year, is expected to go on stream in three years, NIPNA, the news agency of National Petrochemical Company, reported on Wednesday.
Mohammad Reza Yazdani Kashani, DPIC’s managing director, said on the sidelines of the ceremony that a few renowned domestic contractors had participated in the plan’s tender, among which Nargan was chosen following the evaluation of its technical and financial offer.
“Based on the engineering, procurement, construction and financing contract, Nargan Company is committed to provide the project’s needed finance in a maximum period of four months after the start of the deal,” he added.
Established in 1973 under the name of Borna Consulting Engineers, Nargan is an engineering, procurement, construction and project management company with over four decades of experience in the design and development of industrial projects, particularly in the oil, gas and petrochemical fields.
Yazdani stressed that as the polyethylene plan’s licensor LyondellBasell Industries N.V. is not participating in the project, Nargan must also provide catalysts to produce a wide range of materials, according to the agreement.
LyondellBasell is a public multinational chemical company with American and European roots that is the largest licensor of polyethylene and polypropylene technologies. It also produces ethylene, propylene, polyolefin, ETBE and styrene monomers.
The official expressed optimism that the project would be launched within 36 months, which will be a big leap toward creating jobs and increasing welfare in the underdeveloped region.
The plant is due to receive ethylene as feedstock from Gachsaran Petrochemical Company or the West Ethylene Pipeline that runs from the port city of Asalouyeh on the Persian Gulf coast to West Azarbaijan Province in the northwest, supplying ethylene to several petrochemical complexes along the way.
The construction of the polyethylene plant commenced 11 years ago on a 102-hectare piece of land in the region with the goal of meeting domestic demand for heavy polyethylene in the first stage and exporting the product to international markets in the second.
