"Petrochemical plants enjoy such potential and these four petrochemical projects will complete this chain," he said.
Zangeneh said that Kavian Petrochemical Plant with an ethylene output of two million tonnes would create a value chain as far away as Tabriz and Urmia in northwestern Iran.
"Therefore, ethylene would be produced in South Pars [gas field] to be carried by pipeline to Andimeshk, Lorestan, Ilam, Kermanshah, Sanandaj, Miandoab. Mahabad, Tabriz and Urmia," said the minister.
"Jask and Chabahar are two other zones which are prioritized for development due to their strategic importance and they will be activated soon," Zangeneh said.
He said that for the first time in the history of petroleum industry, petrochemical plants had become operational before gas production in Assaluyeh.
"When Mohammad-Reza Nematzadeh (present minister of industry, mine and trade) was CEO of National Petrochemical Company, nobody could believe that a large number of petrochemical plants would be built on 1,400 to 1,500 ha of land," he said. "But now due to the volume of construction we are facing land shortage for petrochemical development. For instance in Bandar Imam we have to seek a new place for development."
Sufficient Feedstock Supply
Iran's minister of petroleum said that sufficient feedstock had been prepared for petrochemical units in the country.
"We will be producing approximately 13.5 million tones of ethane from the 27 phases of South Pars. Meanwhile, different NGL units have been privatized and they have reliable, low-cost and competitive feedstock," said Zangeneh.
He said that for the first time in the history of petroleum, the issue of supply of feedstock to petrochemical plants became very important at the ministry.
"Until recently, the byproducts of oil and gas refineries were used for petrochemical units while the Ministry of Petroleum in the 11th administration focused on the supply of feedstock to petrochemical plants," he added.
Zangeneh said $40 billion investment could increase revenue from petrochemical sales by $20 billion to $21 billion.
"Iran could have the top rank in the region in terms of petrochemical production," he added. Zangeneh said petrochemical products supplied in Iran were valued at $15 billion, adding: "$6 billion worth of these products is consumed in Iran for value chain and the remaining $9 billion is exported to the world markets."
The minister said that efforts must be undertaken for increasing the value-added of petrochemical products, which require stability and foresight.
"Stability depends on policies, behaviors, slogans and strategies. There is no doubt that Iran could afford it," he added.
Modern Petchem Plants
Zangeneh said that it was vital for Iran to establish technologically modern units that would convert natural gas to plastics or raw materials for plastics.
"Under the current administration huge efforts were undertaken for progress in these units, but there are problems with regard to financing. It seems that launching six to seven units could boost the economy in underprivileged areas of the country," he added.
Zangeneh said private investors were being encouraged to invest in the petrochemical industry.
"Given serious competition between applicants for feedstock, we have to pay special attention to the private sector," he added.
Zangeneh said Kaveh methanol project was the largest methanol unit in the world to come online soon with a capacity of 2.5 million tonnes. He added that Phase III of Pardis Petrochemical Plant with a production capacity of 1.5 million tonnes of urea and ammoniac would also come online in the near future.
He said the current year and upcoming calendar years would be golden years for Iran's petrochemical industry.
7 Petchem Projects Due to Come Online
Marzieh Shahdaei, CEO of National Petrochemical Company (NPC) said a major advantage with Iran's petrochemical industry was to avoid selling raw materials.
"Currently 30 petrochemical plants are supplying products in Pars Special Economic Energy Zone," she added.
Shahdaei, who is also a deputy minister of petroleum, said maximum use of gas was a priority for the petrochemical industry after the inauguration of South Pars development phases.
"New projects will be planned with a view to completing the value chain," she said.
Shahdaei said Iran was among few countries with access to petrochemical feedstock. "On this basis, implementation of petrochemical industry projects in the future will be the standard-bearer of foreign investment and transfer of technology into the country," she added.
She said 52 petrochemical production plants were in operation, adding that the rated capacity of these plants stood at 60 million tonnes a year.
Shahdaei said petrochemical plants in Iran brought their output to 51 million tonnes last calendar year.
She said that Iran was earning $15 billion from selling 28 million tonnes of petrochemicals on domestic and foreign markets.
"With the inauguration of these four petrochemical projects, two million tonnes will be added to the country's petrochemical production capacity. Meantime, $883 million has been invested in these projects," said Shahdaei.