Petchem Catalysts 50% Domestically Produced
evelopment of the petrochemical industry in Iran through investment in the downstream sector and supply of necessary catalysts has practically defeated the US sanctions against Iran’s petrochemicals production and exports.
Petrochemical Research and Technology Company (PRTC), as a subsidiary of Iran’s National Petrochemical Company (NPC), has taken effective steps for providing technical knowhow, catalysts and developing necessary processes for this industry. Ali Pajoohan, CEO of PRTC, said: “More than 50% of catalysts have been domestically manufactured. They were all among widely consumed catalysts.”
He told "Iran Petroleum" that measures had been taken by PRTC to neutralize sanctions targeting the country’s petrochemical industry.
“The petrochemical industry in Iran was thinking of supplying catalysts and technical knowhow from long time ago and if most of these measures had not been taken before, and sanctions had been imposed earlier, restrictions in the catalyst sector could have paralyzed the entire petrochemical industry,” Pajoohan said.
He said: “We started a lot of work in 2002 and we have been working on and off. As far as technical savvy is concerned, it would not be possible to do something in a short period of time and reach results.”
He added: “In any case, acquiring technical knowhow would need time, and fortunately it has already started and such capabilities have been developed. Catalysts may account for only 2% of total production process, but is the chokepoint of industrial plants, without which no production will occur. Furthermore, catalysts may not be replaced.”
Pajoohan said: “Thanks to measures taken earlier we see that sanctions are not affecting production, and in practice we are producing any type of catalyst which is utilized.”
He said that this trend could be seen in production and sales figures, “but when it comes to regional competition, the issue of sanctions is prominent, and we should find a solution for it.”
14 Agreements Signed on Catalysts
Pajoohan said Iran was spending $400 to $450 million a year on catalysts, adding that more than half of catalysts are domestically produced, which are all widely needed.
Regarding agreements on catalysts and processes, he said: “Since last year, as sanctions became serious we have naturally shifted part of our activities towards sectors where sanctions could not affect the activities of PRTC. Over this period, we have signed 14 agreements on catalysts, chemicals and processes.”
Catalysts are of high significance for the petrochemical sector in Iran, he said, adding: “We have now reached an acceptable point and even monopoly in the supply of strategic catalysts and chemicals. In parallel, the issue of license for production of petrochemicals is being pursued seriously.”
Pajoohan said: “Another important issue under way by PRTC is to upgrade technical savvy until it is commercialized. In research and technology, we do not insist on acquiring technical savvy from scratch. In such agreements, in addition to the commercialization of acquired technical knowhow, we have worked on the commercialization of the technical knowhow of other companies.
Methanol Catalyst Commercialized
Pajoohan touched on the commercialization of some catalysts, saying: “We have managed to fully commercialize the methanol catalyst and grant its license to a company which is currently building one of the largest catalyst plants which has the highest catalyst production volume in the country and the region.”
He said that another agreement signed by PRTC has been to supply petrochemical catalyst. Signing this agreement is important “as we know that we would need this catalyst before the end of the current calendar year.”
He added: “But the foreign licensor has not provided the catalyst to them. We have tried our best to produce this catalyst with the highest possible quality. This catalyst has won confirmation from two major European companies and that is why consumers are trusting in its quality.”
Industrial-Scale Polyethylene Catalysts
Pajoohan said: “We have long been following up on polyethylene catalysts which are used in HDPE and LLDPE plants. We have produced both of catalysts whose consumption and quality are important on various scales, and conducted various tests on them. We hope that these catalysts would be produced in full on industrial scale and be consumed permanently at petrochemical plants.”
He said that a domestic company would launch an LL catalyst unit, designed with PRTC technology, up to the end of the current calendar year. He added that the unit was 95% complete and would supply Iran’s entire needs.
“This catalyst is one of the most complicated catalysts and we hope that it would reach industrial production prior to the end of the year,” Pajoohan said.
He said: “We used to import polypropylene catalyst, but now are making every effort to start polypropylene catalyst production before the end of the current calendar year and supply it on the market.”
Pajoohan said: “We have also other agreements about catalysts whose production would take time. However, I suppose their production would become operational in coming years.”
New Generation of Catalysts
Pajoohan said: “In petrochemical processes, equipment changes in licenses are not widespread and in many cases, the high quality of products of big international companies stems from changes in catalysts.”
He added: “This issue takes up added significance in the production of polymers. Therefore, we need to be always able to supply more favorable catalysts of higher quality.”
“In other words, changes happen quickly in the generation of catalysts. When we say we have built a catalyst it does not mean that there would be no more research in that sector; rather, it means the start of work in practice. Then we have to upgrade that catalyst in harmony with foreign companies. Otherwise, Iranian and foreign plants would prefer to purchase enhanced catalysts from other companies.”
Pajoohan said: “Therefore, we are trying to comply with quality and economical price obligations in widely consumed catalysts in order to be able to compete with foreign prototypes. In certain sectors we are one of the largest producers and consumers in the world, and the market gives us necessary room to maneuver.”
He added: “But at the same time we have to think of producing a new generation of catalysts. Despite our communications with big companies active in methanol catalysts production, sanctions have blocked our presence in foreign markets. However, our cooperation with various foreign companies is still continuing. It can be argued that sanctions have led us to find solutions to be independent.”