Petchem Output Up 2mn Tonnes
Iranian President Hassan Rouhani has inaugurated four petrochemical projects that would add some two million tonnes to the country's petrochemical production capacity. The projects are Phase II of Kavian Petrochemical Plant, Takht-e Jamshid Petrochemical Plant, Entekhab Styrene Petrochemical Plant and Morvarid MEG Petrochemical Plant in Assaluyeh.
Addressing the ceremony to launch the projects, President Rouhani said under his administration plenty of activities had been done for more exports.
"For the first time in Iran's history, non-oil exports outdid imports in the [calendar] years 1394 and 1395 (March 2015 to March 2017)," he said.
"Although oil prices were low and the 11th administration was under economic pressure, over $40 billion [gained] from oil revenue will be deposited into the National Development Fund of Iran before the 11th administration bows out [next August]," he added.
Like oil, petrochemical industry has based its activities on exports, he said, adding: "Now the preparations have been made for a jump in the petrochemical industry."
Rouhani said national development must take into consideration relative advantages.
"Petrochemical industry is a relative advantage in Iran and now good steps have been taken in this industry," said the president.
Rouhani highlighted the extent of petrochemical industry in southern Iran due to access to water, electricity and sufficient feedstock, saying all these facilities would set the stage for a big jump in the petrochemical sector.
Big Jump in Petchem Sector
President Rouhani said international sanctions imposed on Iran had blocked petrochemical exports.
"We had the problem of supplying feedstock and exporting products. Therefore, the lifting of sanctions on the petrochemical industry was one of the primary agreements reached in Geneva and today we have to get ready for a big jump after the removal of obstacles," he said.
Rouhani noted that the inauguration of the four petrochemical projects and preparations for new projects in coming weeks is an indication of Iran's readiness to move on the path of progress.
Trade Ties with Neighbors
The Iranian president also said that plans were under way to draft agreements with five Eurasian countries to establish a free trade zone.
"Furthermore, good capacity has been prepared for the development of agricultural and industrial products to northern [neighboring] countries," he said.
Rouhani said plans were being made for broadening ties with western neighbors like Iraq and Turkey.
"In this regard, our road and railway connection with the Black Sea and the Mediterranean is on the agenda. Meantime, we plan to transfer commodities needed by Russia from the Indian subcontinent to Moscow through the Bandar Abbas route and by railway," he added.
Rouhani said proper measures have been taken in northern and western Iran to take advantage of export potentialities for growth, development and job creation.
He said Iran was the 14th producer of electricity in the world, adding: "Under the 11th administration, the electricity generation capacity increased by 10% and today we are exporting electricity. We can also become the hub of the region in this sector."
Makran Development
President Rouhani said development of Makran coastal area was strategically important for Iran.
"In this project, it will be possible to export part of the country's oil via the Sea of Oman and it will reduce our dependence on the Strait of Hormuz," he added.
Rouhani went on to discuss the eastern parts of Iran and their potential in mining and transit.
"As oil is a source of power for Iran and we had been deprived of this source to a great extent before the JCPOA until our exports fell to below 1 mb/d, airplanes traffic in the sky of a country is another show of power. Under the 11th administration, aviation traffic increased by 93%," said the president.
Rouhani referred to the renovation of aviation and railway fleets, saying: "Five Iranian provinces will be connected to national railroads before the end of the mandate of the current administration, and our ports are under development. The east of our country will become North-South Corridor."
Iran, Top Regional Petchem Producer
Iran's Minister of Petroleum Bijan Zangeneh said at the same ceremony that completion of value chain in the oil sector was in line with the country's Resilient Economy plans.