Feedstock delivery subject to regional prices

TEHRAN Oct 9 (Shana)–Iran’s Minister of Petroleum has nodded his agreement with setting petchem feedstock prices in accordance with the prevailing prices in the region on a monthly basis, a deputy petroleum minister has said.
Deputy minister of petroleum for planning and supervision on hydrocarbon resources Mansour Moazami made the remarks on Wednesday in Khorasan Razavi province that last year feedstock pricing brought about dissatisfaction among investors and consumers.

He said no place can be found in the world where feedstock prices are set for a one-year period because it undermines investment security.

 “From now on, Petroleum Ministry will be the sole authoritative reference to set feedstock prices, and a specific formula will be the basis for setting feedstock prices for at least 10 years”, he said.

He noted that the current nameplate production capacity of petrochemical plants of the country stands at above 60 million tons which is expected to rise to 100 million tons by making operational 67 half-finished petrochemical projects over the next ten years.

Moazzami said that budgetary commission of the parliament has ratified the details of the pricing formula.

According to the official, with better management of allocating feedstock to petrochemical plants, petrochemical output of the country is expected to rise this year between 10 to 12 percent.

Under our planning, delivery of gas to petrochemical plants in winter will reach 34 mcm/d during peak consumption, Moazzami said adding petrochemical plants will be the third priority for delivery of gas after household and commercial sectors in cold days of the year.

Elsewhere in his remarks he said the winners of the 54 companies having applied for building 8 60-thousand gas condensate refinery will be announced soon.



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