Iran’s petrochemical sector has developed exponentially over the last 40 years and its speed of expansion has been twofold higher than the global average, managing director of the National Petrochemical Company said.
“NPC’s annual capacity to produce 3 tons of commodities in 1978 has now reached 90 million tons and it is still growing steadily,” Morteza Shah-Mirzaei was also quoted as saying by NPC's news website Nipna.
Globally, petrochemical production capacity almost doubles every 20 years, while Iran’s petrochemical production volume has increased by 100% per decade, he added.
The official noted that NPC’s annual output is expected to reach 200 million tons in the next 10 years.
According to the official, NPC’s top priority is to complete the value chain of low value-added products, including methanol, because of which several initiatives are in different stages of construction across the country and are expected to become operational in the next five years.
Referring to Iran’s access to abundant hydrocarbon reserves, he added that close to 540 grades of chemical and petrochemical products are made in 67 petrochemical plants, most of which are located in the proximity of the Persian Gulf.
A number of energy projects in Iran are also in the second phase of development and as soon as they become operational, oil and gas output would register massive growth, the NPC chief said.
“Joining hands with other countries and drawing on the expertise of foreign companies will play a key role in developing Iran’s oil and gas sectors and augmenting its energy security.”
Shah-Mirzaei noted that Iran extracts 1 billion cubic meters of gas per day and its crude oil production capacity is about 4 million bpd, some of which are used as feedstock in the petrochemical industry.
Value Chain
With the implementation of ongoing projects, NPC seeks to diversify the range of petrochemical products and help complete the value chain.
Currently, 68 projects worth $35 billion are underway across the country to increase annual petrochemical output by 50 million tons and help develop the downstream sector.
About 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 surpass 2 million barrels per day in six years,” he added.
He said Iran has more than 159 billion barrels of oil reserves and about 33 trillion cubic meters of gas in place.
“There are about 5,600 kilometers of coastline in the north and south of Iran and the existence of numerous ports has facilitated the export and import of various oil, gas, petrochemical and industrial products,” he added.
The NPC chief announced that the export of petrochemical products is projected to earn $18 billion for the National Petrochemical Company by the end of the current fiscal year (March 2023).
“Close to 43 million tons of petrochemical commodities are expected to be produced in 67 petrochemical companies, of which 33 million tons will be exported,” he said.
Shah-Mirzaei noted that the total earnings of the lucrative sector (exports and domestic sales) will peak at $25 billion by March 2023, as the industry’s annual production capacity has reached 90 million tons.
“Petrochem 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 that will rise to 2 million barrels per day in 2025,” he added.
With the inauguration of new complexes over the next four years, the number of petrochemical plants will reach 77, marking a rise of 15%.
The petrochemical industry has played a key role in Iran’s economic growth, as it creates value-added and reduces the sale of oil and gas on which the economy has been dependent for decades.
