Annual production capacity in Mahshahr Petrochemical Special Economic Zone (Petzone) along the northern coast of the Persian Gulf in Khuzestan Province has reached 20 million tons, managing director of the zone said.
“The Petzone produces petrochemicals worth $5.5 billion to meet a part of domestic demand, while the rest is exported,” Omid Shahidinia was also quoted as saying by Mehr News Agency.
“Close to $20 billion have been invested in the region over the last two decades and further expansion of infrastructure will help boost production capacity and complete the value chain of commodities,” he said.
“The zone is offering special incentives like discount on feedstock to attract local and foreign investments.”
The official noted that Petzone’s collaboration with tech firms can further increase petrochemical production and exports.
“The Petzone accounts for 30% of all petrochemical commodities produced in Iran,” he added.
Shahidinia also said the annual production capacity of Iran's petrochem industry is currently 80 million tons, of which 20 million tons are produced in the economic zone and this can increase provided that tech firms and Petzone team up to launch joint ventures.
“The Petzone’s petrochem units create value-added and reduces the sale of oil and gas on which the economy has been dependent for decades,” he added.
Shahidinia noted that petrochemical plants in the zone have already indigenized a range of catalysts, pumps, valves, turbines and centrifuges, adding that collaboration with knowledge-based enterprises will give momentum to implementation of projects in the region.
According to the official, the Petzone is willing to expand its collaboration with tech firms and knowledge-based companies, including Pardis Technology Park in Pardis, a satellite town 20 km east of Tehran.
Established by the Vice Presidential Office for Science and Technology, it offers free and subsidized working space for technology companies and emerging startups.
Stretching over 3,000 hectares, the Petzone is located along the northern coast of the Persian Gulf in Mahshahr. It was built to promote industrial development, especially in the upstream and downstream sectors by attracting new technologies and creating jobs.
Key Industrial Region
The zone is a key industrial region on the southern flank of the oil province that is dotted with petrochemical facilities.
The zone has access to international waters through Bandar Imam Port and is connected to Turkey and Central Asian countries by railroad.
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.
According to Hassan Abbaszadeh, the National Petrochemical Company’s director for planning and development, 33 projects have been planned to help reduce the import of petrochemical products worth over $1 billion.
“Annually, about $1.5 billion of petrochemical products are imported. However, with the help of 33 development projects, their import will decline by 70%,” he said.
“With the implementation of these projects, NPC also seeks to diversify the range of petrochemical products and complete the value chain in the petrochemical industry.”
The official noted that development projects, which need an investment of $3 billion, will use the remaining feedstock to produce about 20 new commodities, including acrylic acid and propylene oxide.
Currently, 50 projects are underway across the country to increase petrochemical output and develop the downstream sector.
Abbaszadeh said Iran’s revenues from the petrochemical industry will increase by 230% in the next six years.
Annual revenues from the petrochemical industry will reach $50 billion by 2027. Last year, Iran exported around $15 billion of petrochemicals.
Iran did not attract significant foreign investments in this period and had to rely on its own resources, because of international and US sanctions.
According to NPC, 67 petrochemical plants across the country received 40 million tons of feedstock, including condensates, ethane, natural gas and naphtha, in the last fiscal year, which was equivalent to 1 million barrels of crude per day.
The figure is expected to exceed 2 million barrels per day in six years.
