EghtesadOnline: The Persian Gulf Petrochemical Industries Company is looking closely at ways to add value to its output and is building petrochemical plants estimated to cost $8.5 billion, the managing director said Thursday.
Speaking at the groundbreaking ceremony of a petrochemical project in the southwestern city of Andimeshk, Khuzestan Province, Jafar Rabiei said three major complexes would come on early next year, the Oil Ministry news website Shana reported.
“Bid Boland Gas Refinery in Khuzestan, urea and ammonia units of Lordegan Petrochemical Complex in Chaharmahal and Bakhtiari Province, and two olefin plants at Ilam Petrochemical Complex, costing over $4 billion will be launched next year,” he said.
“Completing unfinished projects is on the agenda of the PGPIC,” Rabiei added. Gachsaran Petrochemical Company in Kohgiluyeh and Boyer-Ahmad Province is another such venture expected to be commissioned by 2020, according to Financial Tribune.
Previously, the petrochemical industry focused on the upstream sector, but the policy now is to develop downstream projects, the company boss noted and referred to ethylene and urea as products that have a bigger profit margin.
Construction of the Andimeshk Petrochemical Complex is one example of the PGPIC shift on the downstream sector.
“It will help create more value-added in the petrochemical industry as its products are more profitable than ethylene,” Rabiei said.
The complex will be fed by ethylene produced at South Pars Gas Field and will annually produce 300,000 tons of ethylene oxide, glycol ether and ethanolamine to be used as feedstock for hygiene items, detergents, and additives in textile, cement, gas sweetening, refining and petrochemical industries.
Over the past six years and thanks to the completion of several South Pars Gas Field phases, there has been an abundance of ethane and ethylene supply.
Rabiei added that the PGPIC had finalized a deal with the National Iranian South Oil Company for collecting associated petroleum gas in oil-rich regions.
“The petrochemical industry has joined the National Iranian Oil Company for collecting flare gases which are of high value.”
Collecting APG from oilfields has been a priority of the Oil Ministry and according to plans almost 90% of the APG will be collected by 2022. In three years flaring should come to a permanent end and will be used as feedstock for the rapidly expanding petrochemical industry.
Also addressing the groundbreaking event, Oil Minister Bijan Namdar Zanganeh said the domestic petrochemical industry is growing rapidly and next year for the first time there will be feedstock surpluses for petrochemical projects.
Currently, 30 million tons of petrochemicals worth $20 billion dollars is produced in Iran, which can cross 45 million tons within two years, provided ongoing projects come online.
Zanganeh said there are plans to invest $6.5 billion in petroleum projects with help from domestic resources.
He said a total of 100 million cubic meters of natural gas was added to production capacity in the current calendar year that ends on March 20.