The MOUs were signed on Thursday in an event dubbed Petrofan Zone in southwestern Mahshahr city, Khuzestan Province, where the zone is located.

According to organizers, the Petrofan Zone event, which was held for the first time, is aimed at introducing the capabilities of the county’s knowledge-based companies active in the petrochemical sector in order to meet the technological needs of petrochemical companies.

Speaking at the closing ceremony of the event, the managing director of the Petrochemical Special Economic Zone Organization said the organization will fully support the country’s knowledge-based companies in line with the current year’s motto which is Knowledge-based Production and Job Creation.

“In order to develop the petrochemical industry, we have no other way than to use knowledge-based companies and trust our young generation; knowledge-based firms are the most important drivers of the industrial sector,” Payam Barzegar said.

The Petrochemical Special Economic Zone Organization, which is a subsidiary of the National Petrochemical Company (NPC), is responsible for promoting and developing the petrochemical complexes located in Petzone.

Petzone, which is considered the new gateway to Iran’s abundant oil and gas resources, began its activities in 1997 after receiving the respective authorization from the nation’s High Council for Free Trade and Industrial Zones. Diversity of feedstock, access to international waters, and availability of highly-qualified workforce are among the major advantages of this zone.

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Morteza Shahmirzaei said that currently, the petrochemical sector has the highest added value in the oil industry chain.

The official further put the country’s annual petrochemical production capacity at 90 million tons.

“Some products were not considered in the previous periods and we were faced with their import at the cost of five billion dollars”, he said, adding, “The products of the propylene chain are of special importance and include 70 percent of the total petrochemical imports. To reduce the dependency, the petrochemical company has focused on the development of value chain projects.”

He went on to say that supply of propylene is important for the supply of feed for this chain, and currently the production capacity of propylene is one million tons per year, and the country’s need is more than this amount.

The official explained that 95 percent of propylene produced in the country is used for the production of polypropylene and five percent is used in other sectors. On a global scale last year, 68 percent was in polypropylene and 32 percent in other sectors, so Iran’s consumption pattern is different from the world’s pattern.

In the petrochemical industry’s 10-year strategic outlook plan, 35 projects with a nominal capacity of 13 million tons per year for the production of propylene are predicted, which will increase the production capacity of propylene to 14 million tons, of which 11 million tons will be consumed in polypropylene and three million tons in other sectors, Shahmirzaei announced.

Back in mid-May, the official had said that Iran exported petrochemical products valued at more than $15 billion in the past Iranian calendar year 1400 (ended on March 20).

He said that of the mentioned $15 billion petchem revenues, over $12.5 billion was injected into the Forex Management Integrated System, locally known as NIMA.

The petrochemical industry plays a crucial role in Iran’s non-oil economy, as the petrochemical export is the second-largest source of revenue for the country after crude oil. Petrochemical exports already constitute nearly 33 percent of the country’s non-oil exports.

The NPC’s managing director further stressed that petrochemical industry is a value and job-creating industry, which has no risk.

The official said that 69 production units (including three service units which provide services such as water, electricity, and steam for the production units) are now active in the petrochemical industry of Iran, which play some significant role in bringing foreign currency for the country.

Elsewhere in his remarks, Shahmirzaei stressed that domestic production should be realized in all sectors of the petrochemical industry.

A small part is still remained, so that this target will be achieved, he added.

Petrochemical Research and Technology Company and Research Institute of Petroleum Industry in addition to the other related institutes and centers are taking all efforts in this due, the official added.

He mentioned West Eslam-Abad petrochemical project as one of the projects that all of its parts will be domestically produced.

“We should apply five technical knowledge for this project, which require some special preciseness and effort”, Shahmirzaei noted.

The post Annual petchem export expected to hit $18b by next March appeared first on Iran News Daily.

The situation has left Iran in a good position to be able to expand trade in Asia and Europe rapidly, if the sanctions are removed, the report said quoting trade sources and officials.

The United States imposed sanctions on Iran’s oil and gas industry in 2018 to choke off the Islamic Republic’s main source of revenues. The sanctions significantly declined crude exports but not sales of fuel and petrochemicals.

Iran exported petrochemicals and petroleum products worth almost $20 billion in 2020, twice the value of its crude exports, oil ministry and central bank figures show. The government said in April they were its main source of revenues.

“The world is vast and the ways of evading sanctions are endless,” Hamid Hosseini, board member of Iran’s Oil, Gas and Petrochemical Products Exporters’ Union in Tehran, told Reuters. Competitive prices and Iran’s location, close to major shipping lanes, made its products attractive, he said.

There are also many more buyers of refined products than importers with refineries configured to process Iranian crude.

In addition, Iran exports some fuel by trucks to its neighbors, which involve small transactions that are tough for the U.S. Treasury to detect.

Tehran has been in talks since April to revive its nuclear pact with six world powers, after the United States under President Donald Trump withdrew from the deal in 2018 and ratcheted up sanctions. Iran says it will only comply with the pact if U.S. sanctions are scrapped.

Meanwhile, the Islamic Republic has completely prepared itself to boost its oil production if the measures are eased. While most of the world slashed refinery throughput during the COVID-19 pandemic, Iranian gasoline exports rose 600 percent year on year in 2020 to eight million tons, or 180,000 barrels per day (bpd), the customs administration said. This is while as recently as 2018, Iran had been importing gasoline.

Iran’s revenues from gasoline exports were an estimated $3 billion in 2020, Hosseini said.

Iranian oil production is now about 2.5 million bpd, with around two million bpd allocated to domestic refineries and roughly 500,000 bpd to exports, a source close to the oil ministry said, adding that Iran could boost crude output by two million bpd in two to three months if sanctions were lifted.

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“By completing the projects defined in the second and third leaps, and the implementation of strategic projects defined in the fourth step of the smart development of the petrochemical industry, achieving a goal of generating $50 billion of revenue can be realized in the horizon of 1406,” Shana quoted Mohammadi as saying on Monday.

Speaking at the unveiling ceremony of the NPC’s new portal, Mohammadi noted that 47 major projects have been defined to be implemented in the fourth leap of the petrochemical industry.

“For the fourth leap, a total of 47 new projects have been defined and classified into three sections: combined feed projects, new propylene production projects, and pioneering projects. With the implementation of the fourth leap projects by 1406, the cumulative investment in the country’s petrochemical industry will reach $ 125 billion,” he said.

He further mentioned the increasing demand for feedstock in the industry saying: “We received about 40 million tons of feed equivalent to one million barrels of crude oil per day worth $6 billion from the oil industry in the previous [Iranian calendar] year (ended on March 20), which was consumed in 67 petrochemical complexes.”

With the projects of the third leap going operational in the Iranian calendar year 1404 (starts in March 2025), the petrochemical complexes’ feed demand will reach the equivalent of 2.3 million barrels of crude oil per day, he added.

Mohammadi noted that despite the restrictions caused by the coronavirus pandemic in the previous year, the development goals of the petrochemical industry were completely achieved, saying: “Last year, 25 million tons were added to the country’s petrochemical production capacity and 34 million tons of final products were produced, Which generated $15 billion in revenue.”

According to the NPC head, there are currently 50 petrochemical projects underway across the country that will be operational by the end of 1404 and increase the annual production capacity of petrochemical products to 135 million tons.

The petrochemical industry plays a crucial role in Iran’s non-oil economy, as the export of such products is the second-largest source of revenue for the country after crude oil. Petrochemical exports already constitute nearly 33 percent of the country’s non-oil exports.

Facing the restrictions that the unjust U.S. sanctions brought about for the oil industry, its development has not been halted and, with a change in strategies, the Oil Ministry has been distancing itself from crude selling and is moving toward the production of products with more value-added.

One of the major areas for the realization of this goal has been the petrochemical industry, where a wide range of valuable products can be produced from Iran’s vast oil and gas resources.

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According to Abdolhossein Bayat, the value of petrochemical product exports stands at $2.7 billion which indicates that $3,000 more revenue has been earned for each ton of petrochemical exports compared to selling raw materials.

Speaking at the International Conference of Export Development in Polymer Industries in Tehran on Tuesday, Bayat said: “We are trying to steer the economy in a direction that is oil-based instead of “oil-dependent”, and the development of complementary downstream industries is an example of this principle.”

“We are not going to produce oil as black gold and sell it to others to process it into white gold [petrochemical products], the added value of petrochemical products is much more than black gold [raw oil], so oil must be converted to other products by downstream industries so that all could benefit from it,” he said.

The official noted that in addition to creating more added value, developing downstream industries would create more job opportunities making the economy more resilient in the face of external factors like sanctions.

The petrochemical industry plays a crucial role in Iran’s non-oil economy, as the export of such products is the second-largest source of revenue for the country after crude oil. Petrochemical exports already constitute nearly 33 percent of the country’s non-oil exports.

Facing the restrictions that the unjust U.S. sanctions brought about for the oil industry, its development has not been halted and, with a change in strategies, the Oil Ministry has been distancing itself from crude selling and is moving toward the production of products with more value-added.

One of the major areas for the realization of this goal has been the petrochemical industry, where a wide range of valuable products can be produced from Iran’s vast oil and gas resources.

The post ‘Developing downstream petchem industries to create more added-value’ appeared first on Iran News Daily.

Jalal Mir-Hashemi, the NPC’s director for the production control, put the three-month petrochemical output at 16.3 million tons, and highlighted that the petrochemical plants operated with a good capacity during this period, Shana reported.

With the measures taken and the sustainable supply of feed in the current year, the production of various products in petrochemical complexes has increased and while meeting the needs of domestic markets, the export programs have also been realized, Mir-Hashemi noted.

Emphasizing that Iran’s petrochemical industry is one of the most important pillars of the country’s development and the driving force of the economy, he said: “The main approach of the National Petrochemical Company is to complete the production chain, diversify the products, provide feedstock for domestic industries and increase the added value of the products in this industry.”

Mentioning the current year’s motto which is “Production: Support and Elimination of Obstacles”, Mir-Hashemi noted that the Iranian petrochemical industry is ready to achieve the goals of production growth in the current year.

“All conditions and infrastructure have been provided to achieve a leap in production in the Iranian petrochemical industry in the current year; with the measures taken this year, the idle production capacities of some existing complexes will also be revived,” he said.

The petrochemical industry plays a crucial role in Iran’s non-oil economy, as the petrochemical export is the second-largest source of revenue for the country after crude oil. Petrochemical exports already constitute nearly 33 percent of the country’s non-oil exports.

According to Iranian Oil Minister Bijan Namdar Zanganeh, the country is currently producing nearly 70 million tons of petrochemical products annually and by the end of the industry’s second development leap, the country’s petrochemical production capacity is projected to reach 100 million tons per year.

The minister has pointed to the diversification of products, greater use of liquid feedstock, and land preparation, as some of the important factors to be taken into account for the future development of the petrochemical industry, and said: “In this industry, great work has been done in creating knowledge, indigenizing technologies, and cooperation with universities.”

The production capacity of Iran’s petrochemical industry is expected to be increased from 100 million tons to 133 million tons at the end of the third leap.

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The country’s petrochemical complexes produced 5.5 million tons of products in the mentioned month, according to Jalal Mirhashemi, NPC’s production control manager.

Mentioning the current year’s motto which is “Production: Support and Elimination of Obstacles”, Mirhashemi noted that the Iranian petrochemical industry is ready to achieve the goals of production growth in the current year.

“All conditions and infrastructure have been provided to achieve a leap in production in the Iranian petrochemical industry in the current year; with the measures taken this year, the idle production capacities of some existing complexes will also be revived,” he said.

He pointed to the full observance of health protocols and safety instructions in petrochemical complexes, saying that petrochemical units have always complied with safety requirements and also helped to produce raw materials needed by the healthcare sector.

The petrochemical industry plays a crucial role in Iran’s non-oil economy, as the petrochemical export is the second-largest source of revenue for the country after crude oil. Petrochemical exports already constitute nearly 33 percent of the country’s non-oil exports.

According to Iranian Oil Minister Bijan Namdar Zanganeh, the country is currently producing nearly 70 million tons of petrochemical products annually and by the end of the industry’s second development leap, the country’s petrochemical production capacity is projected to reach 100 million tons per year.

The minister has pointed to the diversification of products, greater use of liquid feedstock, and land preparation, as some of the important factors to be taken into account for the future development of the petrochemical industry, and said: “In this industry, great work has been done in creating knowledge, indigenizing technologies, and cooperation with universities.”

The production capacity of Iran’s petrochemical industry is expected to be increased from 100 million tons to 133 million tons at the end of the third leap.

The post Iran’s monthly petchem production up 7% yr/yr appeared first on Iran News Daily.

The official IRNA agency said the value of trades involving sale of various petchems at local bourse, Iran Energy Exchange (IRENEX), in the week ending on December 11, 2019, had reached a total of 27.108 trillion rials.

The report said around 25.864 trillion rials (nearly $207 million) had been gained from the sale of products at the export ring of IRENEX which is normally frequented by customers from neighboring countries.

It said major products sold to foreigners over the weekly trade period were gasoline, diesel and liquefied natural gas (LNG), adding that the total weight of the cargoes traded, including those sold to domestic customers, had topped 4.3,606 tons.

IRENEX, once a modest instrument used for local energy trades, has become a major component of government efforts to offset the impacts of the American sanctions on the direct sale of oil and petrochemical products.

Major Iranian refineries have been offering their high-end products for trade at the bourse where customers from neighboring countries like Iraq, Pakistan, and Afghanistan are placing heavy orders for products like gasoline and LNG.

The United States imposed its inclusive sanctions on Iran’s oil sale in November last year months after Washington withdrew from an international agreement on the country’s nuclear program.

Government officials believe the sanctions, which were toughened in May, have caused a major boom in the downstream sections of the oil industry where Iran had normally lagged behind in terms of investment and production over the past decades.

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TEHRAN (Iran News) – Iran’s petrochemical exports have increased 1.5 times over the past six years in view of the completion of a number of projects within the same time span.

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TEHRAN (Iran News) – European companies are looking to resume ties with Iranian petrochemical companies, the CEO of Tondgouyan Petrochemical Company said.

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