Petchem High-Tech Equipment Widely Homegrown
CEO of Persian Gulf Petrochemical Industries Company (PGPIC) Jafar Rabiei has said that high-tech equipment used in the petrochemical industry is largely homegrown.
“Feedstock supply is a cause of concern for the petrochemical industry and flare gas gathering has also been a concern for the petroleum industry. The petrochemical industry intervened with the flare gas gathering in a bid to transmit flare gas to the Persian Gulf Bid Boland gas refinery to be converted to petrochemical feedstock,” he said.
Rabiei said retrofitting and construction of flare gas gathering installations would cost about €1 billion, which PGPIC would provide.
“By implementing flare gas gathering projects, the bulk of associated petroleum gas currently flared in Khuzestan would be converted into valuable petrochemical feedstock,” he added.
Rabiei said: “The Persian Gulf Bid Boland is responsible for gathering 590 mcf/d of associated gas. In addition to preventing gas flaring, it would be converted into feedstock for the petrochemical industry and can be exported.”
NIOEC Chief Boasts of Pipeline Self-Sufficiency
CEO of National Iranian Oil Engineering and Construction Company (NIOEC) Saeed Sattari Naeini has said self-sufficiency was achieved in pipeline construction.
“Under the toughest economic conditions and sanctions, we have reached full self-sufficiency in building pipelines to carry oil and petroleum products,” he said.
Sattari-Naeini said the three Naein-Kashan-Rey, Shazand-Qom-Rey and Tabriz-Khoi-Urmia pipelines along with pumping stations and balanced tanks had become operational by NIOEC, adding that National Iranian oil Refining Distribution Company (NIORDC) had supported NIOEC in these projects. He added that Iranian Oil Pipelines and Telecommunication Company (IOPTC) and National Iranian Oil Products Distribution Company (NIOPDC) had cooperated in the project.
He said that NIOEC planned construction of more than 1,000km of pipeline and 15 pumping stations. He added that development of the Abadan oil refinery was also going ahead despite sanctions.
Sattari said the Shazand-Qom-Rey pipeline was 93 km long with capacity to carry 300,000 b/d of oil.
Cabinet Orders PP Output Hike
The Iranian Cabinet has adopted a decision for increasing polypropylene production and managing methanol production in the country.
National Petrochemical Company (NPC) defined strategic projects one year ago and undertook plans in line with the 4th step in the development of the petrochemical industry with a view to upgrading industrial sustainability in all aspects of the petrochemical industry.
Development of the petrochemical industry is envisaged based on the availability of feedstock up to 2027.
Based on feedstock that would be provided by the petroleum industry in coming years and using basic products as feedstock, as well as examining petrochemical imports, 30 strategic projects have been defined for sustainable research and development. They are classified under feedstock, propylene production and accelerative projects.
The accelerative projects – divided into propylene, methanol, ethylene and benzene chains – are aimed at diversifying the mix of products, developing the value chain, reducing imports, supplying feedstock for the downstream industry and increasing the value of products. In light of low investment and water consumption, these projects may be implemented in various parts of the country.
Oil Export from Persian Gulf/Oman Sea
President Hassan Rouhani has said Iran would be exporting oil simultaneously through the Persian Gulf and the Sea of Oman.
“Those who are familiar with politics, strategy and national security know quite well what it means and to what extent counts the Goreh-Jask crude oil pipeline project,” he said.
Rouhani said by laying 1,000km of pipe, “part of our oil exports would be shifted from the Persian Gulf to the Sea of Oman and that is very important.”
“From now onwards, Iran’s oil exports would be done simultaneously through the Persian Gulf and the Sea of Oman,” he said.
Rouhani described the Goreh-Jask pipeline as unique in the country, adding: “This project is highly significant and strategic for national independence. In the real sense of word, it is important for national independence.”
The president said last calendar year, despite economic sanctions, thousands of kilometers of pipelines were constructed and launched.
He also said that refinery and petrochemical projects, as well as 52 dams were inaugurated under his administration, adding that five more dams would come online before his administration bows out.
Iran Determined to Expand PP Chain
CEO of National Petrochemical Company (NPC) Behzad Mohammadi has laid emphasis on the development of the value chain of petrochemical products with a view to upgrading the quality of this industry.
“With the adoption of bylaw on the construction of midstream and downstream petrochemical plants and amending the gradual discount in feedstock prices, the ground is prepared for propylene chain projects,” he said.
Mohammadi said the government had adopted a resolution about development of the petrochemical industry, adding: “The resolution is very good and effective. It has two general parts. The first part of bylaw focuses upon building mid-stream and downstream petrochemical units with private and cooperative investment to produce and distribute PP with a view to creating sustainable jobs, which would facilitate the path for developing the propylene chain in the country.”
“As announced earlier, NPC has conducted comprehensive studies on the qualitative structure of the petrochemical industry and considers development of the value chain of products as a fundamental strategy and approach for intelligent development and quality upgrade in the petrochemical industry. To that end, some legal articles need to be amended,” said Mohammadi.
He said that the propylene chain was the most important value chain of products in the petrochemical industry, adding that its development has so far proven to be insufficient.
“A major portion of petrochemical imports, i.e. $600 million, pertains to the propylene chain, which accounts for 40% of total value of petrochemical imports,” said Mohammadi.
“In examining reasons of insufficient development of the propylene value chain, we had such obstacles to propylene production, because we know that if there is enough propylene, its downstream chain is attractive and will be developed. Currently, about 1 million tonnes of propylene is produced in the country and we have defined projects to make up for shortages. By the end of the 7th Development Plan in 2026, Iran’s propylene production will reach 4 million tonnes,” he said.
Mohammadi said that implementation of projects required preparation of the ground for development.
“With aforesaid bylaws, the ground is now prepared and propylene production projects designed in the Assaluyeh propylene park will go towards implementation,” he said.
“Meantime, given the necessity of paying attention to balanced development in the petrochemical industry, downstream propylene projects in Iran will be developable and will get closer to target markets, which are small and medium-sized enterprises,” said Mohammadi.