CEO announces full realization of petchem development plans by 2022

SHANA — The Deputy Iranian Minister of Petroleum for Petrochemical Affairs announced that 100% of the goals envisaged in the Sixth Development Plan in the petrochemical industry would be achieved by 2022.

Addressing a press conference on Monday, Behzad Mohammadi said by the end of the calendar year of 1400 (March 20 2022), 27 petrochemical projects would come online, completing the second leap in Iran’s petrochemical industry.

Completion of the projects would bring the country’s petrochemical production capacity to 100 million tons per year from currently 66 mt/y, he said.

He added that the revenue of the petrochemical industry would increase from currently $15 billion to $25 billion in 1400.

The Deputy Minister of Petroleum called 1399 calendar year as the golden year of the petrochemical industry, and said: “By the end of this year, 16 petrochemical projects will be put into operation. Due to the impact of the coronavirus on the development of projects, we may see a disruption in four projects but 12 project will definitely become operational.”

Mohammadi went on to add that the coronavirus had affected the global economy: “According to the International Monetary Fund, the growth rate of the global economy will drop by about 3% in 2020.”

“Fortunately, exports of petrochemical products are being carried out despite all the problems,” said the deputy petroleum minister, noting that efforts were being made to address exports not in public.

Emphasizing on sustainable production of petrochemical products, he said: “The only fluctuations at the beginning of 1399 were due to the outbreak of the coronavirus, which gradually stabilized, so that in May this year, petrochemical trading on the commodity exchange increased by 11% compared to last year.”

Mohammadi said that the petrochemical industry received 35 million tons of feedstock equivalent to 800,000 barrels of crude oil per day from the oil and gas industry last year. “The consumption of this industry from the country’s oil and gas resources will increase to an equivalent of 1.5 mbd in 1400.”

35% growth in production capacity by March 2021

Mohammadi pointed out that the production capacity of the petrochemical industry would increase by 35% to 90 million tons per year in the current calendar year, which began on March 20.

This year, he continued, these projects will come on stream: Kaveh Methanol, Bushehr Methano, Kimia Pars Middle East Methanol, Persian Gulf Bidboland, Ilam Olefin, Lordegan and Masjed Soleiman Ammonia and Urea, Kangan Petro-refinery, Miandoab Polyethylene, Hegmataneh PVC, Ibn Sina Petrochimia, and Pentane and Hexane of Elixir Halal.

Moreover, Sabalan Methanol and Parsian Sepehr Refinery and Arta Energy and Khomein Polypropylene projects are four projects that may not be ready for launch this year but will hopefully become operational next spring, Mohammadi said.

The official also said that 27 petrochemical projects would be put into operation in the third leap of the petrochemical industry by the end of 1404 (March 20 2026), adding that the capacity of the industry would reach at least 130 million tons per year and revenue to more than $34 billion.