Iran Petchem Industry Ready for Foreign Investment

More than $50 billion is needed to be invested in Iran’s petrochemical industry. Many of stakeholders of petrochemical projects in Iran are actively developing their plans amid hopes for further gas production from South Pars gas field and the presence of foreign investors over the coming two years.

With the completion of South Pars phases, or the full development of phases 12 to 24 of this field, 650,000 b/d of gas condensate, 6.7 million tons of liquefied petroleum gas (LPG) a year and 4 million tons a year of ethane will be available.

The Ministry of Petroleum plans to allocate the ethane fully to the petrochemical industry. The importance of petrochemical projects in Phase 2 of Assaluyeh comes to the limelight when one takes into account the fact that of 60 million tons of petrochemicals Iran plans to add to this production capacity by the end of the 6th Five-Year Economic Development Plan, 40 million tons will be produced in Assaluyeh.

The bulk of incomplete petrochemical projects in the second phase of Assaluyeh in the proximity of the city of Kangan are under construction. Most of them need finance and foreign loans to go ahead. In recent years, these projects have faced stagnation for a variety of reasons including sanctions. But recently China released lifeline for 5 of a total of 22 projects up for investment. Full operation of these projects, which will be handled mainly by domestic investors, will add 40 million tons a year to the country’s petrochemical production.

Bushehr, Morvarid, Kavian, Persian Gulf, Ettehad, Mehr, Marjan, Kimia Gostar, Jam Armeh, Hormoz, Vaniran, Samand Tarrah, Lavan, Hangam and Damavand are among petrochemical projects in the second phase of Assaluyeh. They include a utility supply complex and related service providing facilities, 7 methanol production units, 3 urea and ammoniac production units, 2 ethylene production units, one ammoniac production unit and an ethane recovery unit. Some of these projects like Mehr Petrochemical Plant have become operational and some others are still in the preparatory stage.

Mehr Petchem, 2nd Phase Production

Mehr Petrochemical Plant is the first petrochemical unit in the second phase of Assaluyeh that has reached production is currently producing 300,000 tons a year of polyethylene. The products of this company are different grades of high-density polyethylene (HDPE) which is the raw material for downstream industries that produce polyethylene pipes, injection parts, films, nylon bags, etc. HDPE is exported to China, India, Turkey, Malaysia, Indonesia, Russia, Ukraine, the Philippines, Azerbaijan, Armenia and Georgia.

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