Petrochemical production capacity is expected to reach 130 million tons in four years, managing director of Iran's Petrochemical Special Economic Zone (Petzone) Organization said.
Emphasizing that the reduction of crude oil sales is one of the major policies of Iran, Omid Shahidinia added that the organization intends to accelerate the initiative to create the value chain in the country's oil production, IRNA reported.
“The feedstock consumed by the petrochemical industry is currently about 1.2 million barrels of crude oil. The figure is projected to reach approximately 2 million barrels of crude oil in 2026 due to development plans devised for the petrochemical industry,” he said.
“The petrochemical industry has improved tremendously in the past four decades and its capacity has risen from 1.5 million tons a year to 100 million tons per year now.”
As a subsidiary of the National Petrochemical Company, the Petrochemical Special Economic Zone Organization was established for the management and realization of industrial and economic development activities in the region.
The organization aims to encourage foreign and local investors to participate in the development of Iran's petrochemical industry, increase petrochemical exports and attract know-how and state-of-the-art technologies through scientific and industrial cooperation with international companies.
Petzone Importance
According to Shahidinia, the Petzone accounts for 30% of Iran’s total petrochemical production.
Of the total annual production capacity of Iran's petrochemical industry, 30 million tons are produced in the Petzone.
Covering an area of 2,850 hectares, the Petzone is located on the northern coast of Persian Gulf in the city of Mahshahr in the southwestern Khuzestan Province.
Due to its geographical location and facilities, the zone has been created to further expand the industry and boost petrochemical trade. By attracting new technologies and generating employment opportunities, the zone also provides economic and social benefits.
From the geographical point of view, the zone has access to international waters through Bandar Imam and Khormousa ports. It's also connected to Turkey and Central Asian countries via the national rail grid.
The region plays a strategic role in Iran's oil and gas industry. Access to oil and gas resources further facilitates the supply of raw materials and feedstock to industrial units in the zone.
With the efforts of domestic experts and engineers, and the use of indigenized know-how, petrochemical plants in the zone have already manufactured a range of catalysts, pumps, valves, turbines and centrifuges.
Further collaboration with knowledge-based enterprises will give momentum to such projects in the region.
With abundant hydrocarbon reserves and new private sector investments, Iran is working hard to maintain its global status in the key sector and broaden its scope.
Based on NPC’s data, more than 32 million tons of petrochemical products were produced in the first half of the current fiscal year (March 21-Sept. 22), which was 8% higher than the output in the same period of 2020.
As several projects are underway to increase petrochemical output, Iran’s annual revenues from the industry is expected to grow by 230% in the next five years and reach $50 billion by 2027.
Iran exported around $15 billion worth of petrochemicals in 2020.
