In the wake of a sharp spike in ethane production, polyethylene output in Kavian Petrochemical Complex in the Pars Special Economic Energy Zone in Asalouyeh, Bushehr Province, has witnessed a 40% increase over the last seven months compared to the same period last year.
According to the Association of Petrochemical Employers Union, the firm's present annual polyethylene output of 1.25 million tons indicates a 150,000-ton increase rise compared to that of 2017.
The union said Iran’s annual ethane production, as feedstock for ethylene, has reached 4.5 million tons and will rise to 6 million tons over the next year. The surge will help boost ethylene output in petrochem complexes to complete the value chain in the key sector.
National Petrochemical Company data shows that polyethylene production in other plants, namely Kermanshah, Lorestan, Mahabad and Kurdistan has reached 194,000 tons, 160,000 tons, 184,000 tons and 180,000 tons respectively in the period.
Polyethylene is an important part of packaging materials. The rising demand from food and beverage industry for the high-quality packaging material is apparently expanding growth of the global polyethylene market.
According to Goldstein Research, a business consulting and market research firm with roots in the US and Asia, the value of the global polyethylene market is anticipated to reach $19.8 billion by the end of 2024 -- a compound annual growth rate of 4.8%.
APEU noted that NPC has recently issued directives for raising ethylene production in petrochemical complexes in Asalouyeh.
According to Ali Mohammad Bosaqzadeh, NPC director for projects, petrochem complexes, namely Kavian, Morvarid, Jam and Arya Sasol, have been commissioned to increase ethylene output by 30% within two years, in which case national annual output will reach 12.7 million tons.
*** Role of Ethane
“As soon as more South Pars Gas Field phases in the Persian Gulf become operational by next March, more ethane will be supplied to the petrochemical complexes,” he said, noting that the plan to raise ethylene output is tied to the delivery of ethane in high quantities.
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.
Petrochemicals accounted for 34.7% of Iran’s non-oil exports in the last fiscal that ended in March.
The industry has recorded sustainable growth over the past five years, such that petrochemical complexes have increased from 43 to 53, installed capacity has reached 64.9 million tons per annum from 59.8 million tons and production hit 44 million tons from 41.3 million tons per year.
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