EghtesadOnline: Completion of petrochemical projects will raise Iran’s nominal production capacity to 72 million tons a year by the end of the current fiscal that started on March 21, Marzieh Shahdaei, head of the National Petrochemical Company said Wednesday.
“Upon the launch of new petrochemical projects this year, output is expected to reach 59 million tons, which will indicate an 18% rise compared to the previous fiscal,” Shahdaei was quoted as saying by Shana.
According to Shahdaei, of the total projected output, 33 million tons, worth $11 billion, will be exported to target destinations and the rest will be used domestically.
Petrochemical production was expected to exceed 50 million tons in the previous fiscal, Financial Tribune reported.
"Phase 2 of Kavian Petrochemical Complex with an annual production capacity of 1 million tons and Phase 2 of Morvarid Petrochemical Company with 550,000 tons, Entekhab petrochemical complex with 250,000 tons, Phase 3 of Pardis Petrochemical Company with capacity of 1.7 million tons, Kaveh Methanol Company with 2.3 million tons—targeted to become the world's biggest methanol plant—are among Iran's top petrochemical projects slated to be fully operational by March 2018."
Shahdaei also added that 22 petrochemical projects are underway in Mahshahr at an estimated cost of $1.3 billion,
Commenting on NPC's plans to have a stronger presence in world markets, the official added that the removal of international sanctions last year paved the ground for raising petrochemical shipments to Europe.
Asked about plans to boost production capacity to 120 million tons a year by the end of the sixth economic development plan (2017-22), she said that accomplishing such an ambitious goal requires more than $70 billion in new investments, a major part of which needs to be funded by foreign companies.
Tehran has said it needs $72 billion in foreign investment for 80 major petrochemical projects in line with plans to triple petrochemical production over a decade.
According to Oil Minister Bijan Namdar Zanganeh, the petrochemical industry has a "promising future".
According to Gholamreza Jokar, managing director of Morvarid Petrochemical Company, the company's monoethylene glycol (MEG) unit started production of the liquid compound in the last fiscal year. The MEG unit is to reach full production capacity of 500,000 tons a year soon.
Referring to China as the main buyer of the product, Jokar said, "As the company's production level increases it should expand its foothold in international markets via long-term contracts."
To boost MEG exports, negotiations are underway with India and European states.
MEG is an important raw material in industrial applications. A primary use of MEG is in production of polyester resins, films and fibers. In addition, MEG is essential in producing antifreezes, coolants, aircraft anti-icing fluids and solvents.