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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.

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The ground breaking ceremony of the mentioned project was attended by senior petrochemical officials including the PGPIC Managing Director Jafar Rabiei, and the project’s managing director Mehdi Gharouni.

Speaking at the ceremony, Rabiei noted that this complex is the biggest petrochemical complex in Mahshahr Petrochemical Special Economic Zone and when completed it will provide direct job opportunities for 5,000 people.

The said petrochemical complex, is comprised of one olefin unit with a production capacity of 1.26 tons of ethylene and 420,000 tons of propylene, as well as five polymer units including two units of high-density polyethylene (HDP), one unit of linear low-density polyethylene (LLDPE), one unit of polypropylene, one monoethylene glycol (MEG) unit and a butadiene unit, according to the project’s managing director.

The project will be implemented in two phases, the first phase of which includes the construction of the olefin unit with five relevant storage tanks and cooling towers, and the rest of the units will be built and commissioned in the second phase.

“Persian Gulf Holding, while making serious efforts to complete previous projects, feels a responsibility to begin new large-scale projects for developing the petrochemical industry,” Rabiei said in the inauguration ceremony.

The official noted that PGPIC is collaborating with Bandar Imam and Arvand petrochemical companies as shareholders in this mega-project.

“The important characteristic of Mahshahr Petrochemical Project is that all its feed is produced by PGPIC and there is no concern about the feed in the future, so in this regard, Mahshahr Petrochemical is a significant project,” Rabiei said.

He further noted that another mega-complex is also going to be constructed in Assaluyeh, saying: “the construction of this project will hopefully begin in the near future and when completed it will be the biggest petrochemical complex in the region.”

Mahshahr Petrochemical Special Economic Zone in Iran’s southwestern Khuzestan Province is one of the major petrochemical zones of the country.

In July 2019, the managing director of Iran’s National Petrochemical Company (NPC) unveiled a plan for the construction of a new petrochemical hub in Mahshahr Petrochemical Special Economic Zone in order to add up to six million tons of new capacity to the zone.

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The MOU was signed by NPC‘s director of planning and development and the CEO of the German Institute, on the sidelines of the International Conference of Business Excellence in Tehran on Wednesday.

As Shana reported, the MOU is aimed to provide NPC with training and evaluations in the field of business excellence and also allows the company access to the European Foundation for Quality Management database to use in the Iranian petrochemical industry.

The International Conference on Business Excellence in Petrochemical Industry was held at the place of the Iranian Oil Ministry with the presence of heads of Iranian petrochemical holdings and companies and several guests from the EFQM board of directors.

The 2020 edition of the EFQM Organizational Excellence Model was presented at this conference by the designers of this template.

The European Foundation for Quality Management is a not-for-profit membership foundation in Brussels, established in 1989 to increase the competitiveness of the European economy. The initial impetus for forming EFQM was a response to the work of W. Edwards Deming and the development of the concepts of Total Quality Management.

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“The face (the outlook) of the petrochemical industry is changing with the implementation of downstream petrochemical projects and the diversification of the product portfolio,” Shana quoted Behzad Mohammadi as saying during a visit to petrochemical projects in Mahshar, south western Khuzestan province.

Stressing the significance of the downstream industries in the development of the petrochemical sector, the official said one of the NPC’s long-term goals, in the path toward sustainable and smart development of the industry, is the implementation of downstream projects based on the country’s basic feedstocks.

He also emphasized that implementing petrochemical projects with the aim of completing the industry’s value chain is currently the most important goal of the NPC and all the company’s current programs are set to fulfill this goal.

“The petrochemical industry is in dire need of diversification of its final products, so the National Petrochemical Company is looking to develop the industry’s production chain to create a resilient industry so that the country would not need to import expensive products,” he stated.

The official underlined the increase in the country’s propylene production as one of the NPC major goals for sustainable and smart development of the petrochemical industry in the long run and said: “An important goal in planning new petrochemical projects is to meet the industry’s annual need for three million tons of propylene.”

Back in December 2020, Mohammadi had announced launching a four-step plan for developing the country’s petrochemical industry, in which the basket of petrochemical products would be noticeably diversified through 30 strategic projects.

Mohammadi said that the mentioned 30 projects were defined based on the oil and gas feedstock and base products as well as investigating the status of domestic and international markets.

The official noted that 90 types of petrochemical products are currently produced in the country, among them 18 types are polymers categorized in 333 grades.

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TEHRAN – Head of Iran’s National Petrochemical Company (NPC) Behzad Mohammadi says major foreign companies have signaled positive pulses regarding the U.S.’s probable return to the JCPOA, saying the petrochemical industry will see more projects to come on stream this year.

Speaking in a press conference on the National Petrochemical Industry Day, Mohammadi said that 17 projects with the investment of $11b will come on stream by the end of the current Iranian calendar year, adding that so far 9 projects have been inaugurated and the remaining eight projects will be inaugurated by the yearend. He noted that by inauguration of the remaining projects, 25m tons will be added to the capacity of the industry and it will increase to 90m tons per year. He admitted that due to the coronavirus pandemic there has been some delay and one or two projects may be inaugurated next year.

He said petrochemical industry is strengthening its position in the country as the industry number one and it is also strengthening its position in the national economy more and more. He noted the valuable achievements of this industry indicate the ineffectiveness of the imposed sanctions against its companies and managers.

Mohammadi pointed to the production sector in the petrochemical industry, saying that the number of production complexes was 55 last year and currently it is 64 complexes and it will reach 70 by implementation of the new projects.

He said almost 30 percent of the petrochemical projects are consumed in the country and 70 percent are exported to different countries.

He referred to the diversity of products, saying that currently 90 types of petrochemical products are produced in the country as 18 are polymeric and they are produced in 333 grades.

On the probability of the U.S. return to the nuclear deal with Iran, the JCPOA, and effects of it on the development of petrochemical industry and rise in the exports, he said this change would help the country in the fields of transfer of technology and above all attraction of foreign investment between 80 to 180 billion dollars, noting that foreign investment can definitely boost the industry.

Mohammadi added that currently they have not started talks with any foreign company but they have received positive pulses from some major foreign companies on the possible return of the U.S. to the JCPOA.

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TEHRAN (Iran News) – Close to two million tons of the dormant capacity of Iran’s petrochemical complexes will become operational in the next Iranian calendar year (to start March 20, 2020), said a manager of the National Petrochemical Company (NPC) on Saturday.

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TEHRAN (Iran News) – The CEO of the National Petrochemical Company, NPC Co., said that the company has launched an initiative to orchestrate petrochemical projects in the industry.

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IRAN NEWS ECONOMIC DESK

The event was inaugurated at Tehran’s permanent fairgrounds in the presence of Iranian Minister of Petroleum Bijan Zangeneh, CEO of the National Petrochemical Company (NPC) Behzad Mohammadi and a number of senior energy and petrochemical officials.

As many as 570 domestic and 35 foreign exhibitors run stand at the exhibit this year.

Moreover, 12 delegations from 10 countries are to visit the fair this year.

The delegations will come from such countries as Iraq, Afghanistan, Turkey, Azerbaijan, Pakistan, Vietnam, Armenia, Kenya, India, and Tunisia.

Moreover, individual businessmen from Italy, Ukraine, China, Romania, Russia, Syria and Lebanon have planned to visit the fair.

Introducing the capabilities of startups and knowledge-based companies, holding seminars and workshops on downstream industries, and signing cooperation agreements between active petrochemical companies are among the programs anticipated at the 13th Iran Plast Exhibition.

The ECO Plus Conference will also be held at the end of the 13th Iran Plast International Exhibition. The ministers of oil and energy of Central Asian and neighboring countries are to visit the exhibition, and discuss enhanced cooperation and investment opportunities in the field.

Addressing the opening ceremony of the exhibition, Zangeneh said preventing sale of raw materials including crude oil and gas was one of the main plans of the Iranian Ministry of Petroleum, adding production of $25-billion worth of petrochemicals by 2021 was a major leap in the industry which would continue.

The oil minister official said the country was on the threshold of the third leap in the petrochemical industry.

“Back in the 1997, under President Khatami, when I was the then-minister of petroleum, the value of petrochemical output of the country was $1 billion, but we could launch a large number of petrochemical projects by the efforts of the administration, the Iranian Ministry of Petroleum and the National Petrochemical Company (NPC) until 2005,” he said.

Zangeneh further said that Iran’s ethane production capacity would reach 16 million tons per year by 2021 from 4.2 mt/y back in 2013. The items’ current production capacity is 7.3 mt/y.

He said that the country’s petrochemical production capacity would cross 100 mt/y by 2021, adding 27 projects will come on stream in the country by 2021.

The official said that the petrochemical production capacity of the country would reach 130 mt/y by 2025 valued at $37 billion.

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