Feasibility studies to produce olefin in Fanavaran Petrochemical Company in Khuzestan Province are underway as planned, the CEO of Tamin Oil, Gas and Petrochemical Investment Company (Tapico) said.
Denying recent reports that the plan was scraped due to financial disagreements with the National Petrochemical Company over costs, Mahmoud Makhdoumi said “the problem has been resolved” and feasibility studies are underway.
Local media reports said talks about the new venture had come to a halt due to the currency crisis over the last several months and its impact on the overall plan to build the plant.
"The initiative is aimed at converting natural gas to chemical products—aka GTX," he said, noting that the unit's annual capacity will be 3.5 million tons of olefin. The unit would help complete the value chain in the complex by producing propylene, polypropylene and ethylene.
According to the official, GTX units are completed in three stages, the first of which is converting natural gas to methanol that is used as feedstock in the second stage whose product is olefins. In the final stage, olefin and aromatics are used as feedstock in downstream industries.
Makhdoumi added that talks are underway to reconsider purchase of much-needed international licenses as well as marketing strategies simply because the high and rising foreign exchange rates “have totally changed previous plans.”
Foreign licenses granted by petrochem majors like Germany's Linde Group or UK's TechnipFMC are necessary for petrochem plants as they help them not only take advantage of advanced manufacturing technology but also enable them to sell their products in international markets.
Setbacks notwithstanding, the Oil Ministry is keen on expanding the petrochemical sector, as it has the potential to help evade US sanctions by raising revenues, says Marzieh Shahdaei, a deputy oil minister.
Iran is striving to diversify its oil-dependent economy and make better use of its hydrocarbon reserves by producing petrochemicals and other products with higher value-added that can compete in international markets.
