Iran, Regional Petchem Hub
Efforts are picking up speed for the initiation of negotiations to change circumstances under sanctions. But Iran’s petrochemical sector is still in a good position despite all hardships.
As a nascent industry, the petrochemical sector has been the driving force in production, employment and hard currency generation even under sanctions.
Iran, as the petrochemical hub of the region, can make a stronger presence in the international arena besides supplying domestic needs. Whereas Iran’s petrochemical industry is making up the largest non-oil export figure in national economy, it is known as one of the drivers of national economy, economic diplomacy and national security guarantee.
The petrochemical sector is among sectors that are not lagging behind schedule under the 2021 vision plan. Some projects are under construction, while more plants are set to become operational.
The petrochemical industry may be viewed as a symbol of resilient economy. Having modified its errors in recent time, it has sought to reach its genuine status.
US Propaganda Campaign
Iran’s petrochemical industry has not witnessed any significant changes ever since the United States pulled out of the 2015 Iran nuclear deal with six world powers and subsequently imposed tough sanctions on Iran. The petrochemical sector has managed to push ahead with its previous production and exports, and have its traditional markets.
In practice, Iran’s petrochemical industry has shown that the US’s sanctions on Iran’s petrochemical sector had nothing but propaganda.
In reaction to the US sanctions on Iran’s petrochemical industry, Bijan Zangeneh, petroleum minister, said: “Outwardly this issue is merely for propaganda to show that Iran is under pressure. It is clear that these sanctions have not impacted Iran’s petrochemical industry.”
Behzad Mohammadi, CEO of National Petrochemical Company (NPC) said petrochemical exports were different from crude oil sales. He added that there are at least 350 variations of petrochemicals with hundreds of potential buyers across the globe and various methods of selling.
He said in May that NPC had set up a working group to explore ways of countering sanctions and possible challenges. He also provided some data on the petrochemical industry and the planned inauguration projects, which all indicated the good status of this industry.
Petchem Market Immune to Sanctions
According to NPC plans, 55 petrochemical plants are currently active across the country with two hubs operating in the Special Economic Zone and the Pars Special Economic Energy Zone. They produce 55 million tonnes of products totally, including 300 grades of polymer products, 44 grades of chemical products and 350 grades of non-polymer and non-chemical products. There is capacity for selling 31 million tonnes of petrochemicals.
Based on the latest announcement by Mohammadi at the Iran Oil Show, Iran is gaining $17.1 billion from selling petrochemical products. This amount of revenue is indicative of the dynamism of this industry which has created more than 108,000 direct jobs through its projects. Over recent years, dozens of petrochemical projects have become operational and based on a roadmap drawn up for the petrochemical industry, a total of 18 projects would come on-stream by March 2021. The three projects: Kaveh Methanol, Bushehr Methanol and Ilam Olefin would come online this year, while 15 others are set for next year. The startup of these 18 petrochemical projects by March 2021 would raise volume of marketed products to 51 million tonnes, up 70% from now.
6th Five-Year Plan Projects
Some of these projects are enshrined in the 6th Five-Year Economic Development Plan. They include Siraf Energy 15th Methanol, Kurdestan Petrochemical Plant (inaugurated in 2017), Fateh Kimia GTPP, the 16th ammonia and urea project in Phase 3 of Pardis (inaugurated in 2018), Kaveh 10th methanol, Marjan 7th methanol (inaugurated in 2018), Masjed Soleiman 9th ammonia and urea, Ibn Sina Petrochemical Plant’s Maleic anhydride/butandiol/PBT, Golestan’s 12th ammonia and urea, Cyrus acrylates, Bid-Boland 2, and Arg acrylonitrile. In the meantime, Estahban’s ethylene vinyl acetate, Salman Farsi PDH, West Ethylene Pipeline, Shahid Rasouli Pentaerythritol, 2nd phase of Kermanshah ammonia and urea, Modaberan Shimi maleic anhydride, Dehdasht high-density polyethylene, centralized storage tanks in Phase 2 of Assaluyeh, and Kharg’s 2nd methanol are about to become ready for operation.
A number of other projects are on the agenda within the framework of the 6th Five-Year Plan. They include Parisan 3rd GTX, Sahand Hirsa Polymer PDH/PP, Energy Dana’s GTPO, Fanavaran Petro Olefin GTPO, Rah Poyan Asr Khavar Mianeh GTPP, Rumak Energy Saramad acrylate chain, Hamoun Petrochemical PVC, NPC GTPP, Dena Boyer Ahmad Petrochemical Plant’s GTPO, Hemmat petrochemical contaminating gas gathering, Arta Energy methanol and formaldehyde, Petro Saman Zagros GTX, Kangan downstream petrorefinery and olefin, Ardebil Petrochemical Plant’s GTPP, Entekhab Investment Development Group’s PDH/PP, Fajr Kerman’s GTX, Fajr Kerman GTX, Kerman Petrochemical Plant GTPP, Razavi Oil and Gas Development PDH/PP, Farid Gostaresh International Investment LAB, Jam Petrochemical PDH/PP, Alvand Petrochemical Polypropylene, Azaran Industrial Structures PDH/PP, NGL 3100, Navid Saba Jam Oil and Gas Development, Sia Chemical Industry Expansion GTTP, Mahan Shimi Zagros GTPO, Chabahar 1st GTPO, Amir Abad GTX, Chabahar 2nd GTPO, Gilan GTPO, Chabahar 3rd GTPO, Khorasan GTPO, Chabahar ammonia/urea, Seraj Gostaran Rejal GTPO, Kaveh Methane Qeshm GTX, Tadbir Energy Eram GTP, Qeshm Oil, Gas and Petrochemical GTX, Petro Sanat Pishtaz ETBE, Qeshm International Petrochemical Industry GTPP, Naar Kangan GTL, Petro Mofid Development GTPP, Pardis Azarbaijan GTPP, and Parsian 2nd GTX. Most of these projects would come on-stream in coming years.
The Petroleum Ministry has also other petrochemical projects under way within the framework of resilient economy.
The Gachsaran and Damavand petrochemical plants, ethane recovery at SP12, Persian Gulf Bid-Boland refinery, Sabalan, Masjed Soleiman,, Dena Kimia Pars Khavar Mianeh, Kaveh Methanol, Marjan Methanol, Bushehr, Phase 1 of Mahshahr plant, Ilam and Lordegan are among these important projects.