Ilam Petrochemical Plant, Tabriz Petrochemical Plant has moved to build its own connection to WEP.
This pipeline is 2,700 kilometers long and will feed 11 petrochemical plants in Kermanshah, Andimeshk, Lorestan, Kurdestan, Miandoab and Mahabad. On the way of WEP are located Kavian, Lorestan and Mahabad petrochemical plants and Kermanshah polymer plant. WEP takes products supplied by Kavian Petrochemical plant to western areas in Iran aimed at development of petrochemical industry.
Iran’s petrochemical industry, which has been growing rapidly in recent years, will enter a new phase next year as petrochemical plants in western provinces become operational.
Hamedan Petrochemical Plant is in the final phases of its construction and Kurdestan Petrochemical Plant is to come on-stream by next March. The first phase of Ilam Petrochemical Plant recently started production and next year it will be able to run at full capacity as it receives more feedstock.
Undoubtedly, Iran’s western province could soon become an industrial hub as petrochemical industry is being developed there. Then petrochemical products will at times meet domestic needs and be exported. NPC projects' manager recently said that construction of three more petrochemical plants is under way rapidly in western Iran.
Ilam Petrochemical Plant is close to coming online, and startup of several petrochemical plants in western Iran will remove impoverishment and provide the infrastructure for development in underprivileged areas.
WEP is currently in its final stages and enjoys full backing of NPC.
Abbas Sha'ri-Moqaddam, former NPC managing director, said one of the major challenges to WEP is local opposition that has so far caused problems for the contractor of the project. Provincial officials do not want to offend local people; therefore, they take no action to resolve this problem.
He said that WEP is fully operational between Assaluyeh and Miandoab, adding: “At present, Morvarid, Ilam, Lorestan, Kurdetan and Kermashah are being fed by this pipeline.”
Sha'ri-Moqaddam said ethylene has not yet been injected to the pipeline between Miandoab and Mahabad due to local opposition.
Shahdaei recently said WEP is 80% completed, adding: “Currently, the second phase of Kavian Petrochemical Plant is ready to come online and is waiting to be fed with ethylene by this pipeline.”
She added that WEP can create new jobs in the area as several petrochemical plants will start operation.
State-run or Private?
The only body competent to decide about WEP to remain in state hands or be privatized is the government because maintenance, control and protection of the pipeline and accountability to consumers of ethylene is a significant and sensitive issue.
The government assigned the construction of WEP to Ministry of Petroleum in 2002. At that time, the project was supposed to cover Kohguiluyeh Boyer Ahmad, Kermanshah, West Azarbaijan and Kurdestan provinces where petrochemical plants were supposed to be built. But after some time more provinces were added to this project.
After Article 44 of the Constitution took effect, petrochemical units lying on the way of WEP were totally privatized. However, no decision was taken about the pipeline itself in the Cabinet. This issue is now a complicated affair for petrochemical industry because maintenance of this pipeline and the ethylene it carries is very sensitive and costly.
This pipeline is unique in the world because of its length. Petrochemical officials recently said a competent and qualified company is expected to be assigned the startup operation of WEP without being put out to tender. But there is still no word on the privatization of the pipeline itself. A scenario speculated from the past about WEP has been its cession to Kavian Petrochemical Plant as the main producer of ethylene. But conditions have changed and a single company is now both producer and consumer of ethylene.
Byproducts
Production of some alcoholic substances, agricultural consumption, production of chemicals and other special substances are among other advantages of ethylene transfer by this pipeline. These advantages along with other usages of ethylene for various polymer productions have given a boost to ethylene production and transport by capsule in the market, which shows the high value of this product.
A major point in the policies of the Resilient Economy instructed by Supreme Leader Ayatollah Ali Khamenei has been to avoid the sale of crude oil and natural gas.
It is common knowledge that besides crude oil, what keeps Iran safe from fluctuations in the global economy is sustainable development which implies generation of value-added.
WEP can serve the economy of western Iran the most. This pipeline and petrochemical plants on its path have the capacity to play an important role in upgrading Iran’s economic standing, eradicate unemployment, create jobs and generate revenues for western Iran.
Getting more profits through creating a perennial market for petrochemical products, supplying products in consistency with the market’s taste and for getting more profits, helping national macroplans and sustainable job creation in the country, presenting an alternative model for downstream petrochemical development instead of upstream petrochemical development across the country, clearing the way for further contribution of the private sector to the country’s development plans and helping implement Article 44 of the Constitution, the necessity of taking into consideration complementary industries indirectly at the NPC mix and reducing possible risks and shortcomings resulted from international sanctions are among the advantages of development of downstream petrochemical industries alongside important projects like WEP in western Iran.