Diversity in Petchem Products
Over recent years, Iran’s petrochemical industry has been seriously seeking to diversify its products by producing methanol, urea and ammoniac. To that effect, propylene and relevant downstream units seem to be of higher significance. Over the past two years, new petrochemical projects have been located based on spatial planning. The priority is now to erect petrochemical plants near sea.
Marzieh Shah-Daei, project manager at National Petrochemical Company (NPC), has said that location of petrochemical plants is up to the NPC’s Projects Directorate.
She said that propylene plants are currently prioritized, adding that negotiations have started with some Chinese companies for acquiring license for GDP units.
Shah-Daei said there are many methanol production units among half-finished petrochemical projects, adding: “It is estimated that around 25 million tons of methanol would be produced and that would affect the methanol market. Therefore, in order to generate value-added from methanol, we are mulling methanol-to-olefins (MTO) and methanol-to-propylene (MTP) projects.”
She said propylene is largely used and is of high value-added. “Over the past two years, we have concluded that we should further think of establishing MTO and MTP units and developing downstream industries.”
She said that 60 half-finished petrochemical projects are under way with their progress varying between 1% and 98%. She said these projects have been categorized based on the level of their progress, adding that 15 projects are more than 60% completed.
$33b Investment
Shah-Daei said $33.4 billion in investment was needed for financing 60 half-finished petrochemical projects in Iran, adding: “By implementing these projects, Iran’s petrochemical production capacity will go from the current 60 million tons to 120 million tons.”
She said seven petrochemical projects are prioritized to come on-stream by the end of the next calendar year in March 2016. She said these projects would add 2.7 million tons to Iran’s petrochemical output capacity.
Shah-Daei said 36 new petrochemical projects are envisaged in Chabahar, Jask, Qeshm and Parsian within the framework of a planned 60-million-ton increase in the country’s petrochemical output.
“Iran envisages more than 105 mcm/d of methane, 2.8 million tons a year of ethane, 2.1 million tons a year of propane, butane and liquefied gas and 4 million tons a year of naphtha as feedstock for its new petrochemical projects in the future. Therefore, investors and domestic and foreign companies active in these projects will have no concern,” she said.
Venezuelans Replaced
Shah-Daei said the Venezuelan investor is unwilling to operate Veniran Apadana petrochemical project.
“We are looking for an investor to replace the [Venezuelan financier]. Of course, Persian Gulf Holding Company is currently managing this project,” she said.
Shah-Daei said 11 million euros plus IRR 350 billion have so far been invested in Veniran Apadana petrochemical project.
“After the exit of the foreign party from this project, Iran International Petrochemical Company, the main stakeholder in this project, will take care of investment in this project,” she said.
A total of 62 half-finished projects remain to be completed in the petrochemical sector. Among them, 15 are more than 60% completed and some others including Takht Jamshid, second phase of Kavian, Lorestan, Mahabad, Kurdestan, Hegmataneh, Kaveh, MEG Morvarid, Shohadaye Marvdasht, Pardis 3, first phase of Damavand, Karoun and Dalahou are expected to become operational this year.
Efforts are also under way for West Ethylene Pipeline to come online soon.
Iran is poised to see its petrochemical production capacity increase by 1.3 million tons by March 2015 and by 7.1 million tons by March 2016.
National Iranian Oil Company (NIOC) officials have promised to supply the entire ethane produced in the South Pars gas field to petrochemical plants. The South Pars ethane would be able to increase production from petrochemical plants in Assaluyeh by more than two million tons. If the aforesaid 14 projects become operational, some 8 million tons will be added to the country’s petrochemical production capacity.
Miandoab, Andimeshk, Bushehr, Masjed Soleyman, Sabalan, Loredegan, Hengam, Kharg, Genaveh, Dashtestan, Siraf, Petrokimia, Park Styrene, Veniran, Arg Shimi Parsa, Marjan, Gachsaran and Firouzabad petrochemical plans are expected to come on-stream in three to four years.
Following the recent awarding of Kharg NGL, Genaveh and Dashtestan petrochemical projects to Oil Pension Fund, one can hope that these projects would become operational.