According to a report by the Oil Ministry news agency Shana, 17 petrochemical projects worth $ 11.5 billion were planned for the current year (March 2020-21), to increase production by 25 million tons. Of the total 17 projects, 11 are in different stages of construction and are expected to become operational by the end of the year (March 2021); however, it is likely that some of them go on stream early next year.
The projects are in line with government policy to stop exporting raw material, complete the value chain in the downstream industries, manufacture value-added goods, create jobs, boost non-oil exports and forex earnings and develop the economy.
Over $4 billion has been invested in six projects that came online this year and should annually generate at least $1.4 billion.
Miandoab Petrochemical Complex in West Azarbaijan Province, which started production in summer, converts ethylene to higher value-added products, namely heavy polyethylene, and linear and light polyethylene with annual capacity of 140,000 tons. It receives feedstock and ethylene via the West Ethylene Pipeline, which is the longest ethylene pipeline in the world with a 2.5 million- ton annual capacity.
Kaveh Methanol Complex near the port city of Bandar Dayyer in Bushehr Province was launched in mid-summer. It is the largest of its kind in Iran and one of the biggest in the world with a daily methanol output capacity of 7,000 tons or 2.3 million tons per annum. With 6 million cubic meters of natural gas per day, the plant will also produce ammonia, urea and other polymers.
The catalyst production unit of Lorestan Petrochemical Complex was also inaugurated in mid-summer. It manufactures 100 tons of catalysts annually for polyethylene factories.
Another petrochemical company that started operating in mid-summer was Middle East Kimia Pars, situated in Pars Special Economic Energy Zone in Asalouyeh, Bushehr Province.
The plant receives 4.5 million cubic meters of gas a day to annually produce 1.6 million tons of methanol, a primary liquid petrochemical.
The first phase, among three, of Bushehr Petrochemical Complex, in Pars Special Economic Energy Zone, was launched at the end of summer.
According to a Shana report, the first phase receives 9.6 mcm of sour gas a day, and has an annual production capacity of 1.6 million tons of methanol, 1.3 million tons of methane, 850,000 tons of ethane, 130,000 tons of propane, 30,000 tons of butane, and 125,000 tons of sulfur.
The last of six projects that helped increase output this year was the ammonia unit in Lordegan Petrochemical Company in western Chaharmahal-Bakhtiari Province that started production late last month. It buys 750 mcm of gas and can produce 677,000 tons of ammonia per year, which will be used to make fertilizers.
Iran’s 55 petrochemical companies produced 35 million tons of products between March 22 and Sept. 22. Despite the coronavirus pandemic and US sanctions growth was 8% in volume compared to the same period last year. Petrochemical plants manufacture 333 grades of polymers and 40 types of chemicals.