Oil Minister: Iran should gain more value-added by stopping exports of feedstock

TEHRAN (FNA)- Iranian Oil Minister Bijan Namdar Zanganeh underlined that Iran should establish more processing industries in the oil and gas sectors to stop export of raw materials and boost supply of products to the other countries in a bid to earn more value-added.

“Iran’s petrochemicals are exported to Taiwan and China to be changed to final products, and then they are returned to Iran,” said the minister while underlining the importance of processing industries, adding, “Iran has massive potentials to develop petrochemical processing industries.”

The Iranian minister added that some petrochemical units’ feedstock should be changed into petrochemical products with more value-added.

Early in June, an Iranian deputy oil minister announced that in addition to new petrochemical hubs in Chabahar, Lavan and Sarakhs, 20 other petrochemical projects will become operational in the country.

The announcement was made by Deputy Oil Minister and Head of the National Petrochemical Company (NPC) Abdolhosain Bayat.

He added that nameplate production capacity of petrochemical products will reach 100 million tons in 2015, provided financing of the projects go ahead on schedule.

In addition to three petrochemical hubs, 20 other petrochemical projects are waiting for investment, the NPC chief said.

According to the official, since the beginning of new Iranian year in March, six Mehre-Mandegar (Lasting Kindness) petrochemical projects have come online and construction of other Mehre-Mandegar projects has gained momentum.

The six Mehre-Mandegar projects inaugurated this year have raised production capacity of petrochemicals by 2.750mln tons and generated more than $2bln revenues for the country.

“Since 2005, 52 petrochemical projects have been completed with more than $22bln investment. These projects have added our country’s production capacity of petrochemicals by 38mln tons,” he concluded.

By Fars News Agency


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