Baku, Azerbaijan, Dec. 13
By Fatih Karimov- Trend:
Iran's revenues via petrochemical products is planned to reach $70 billion per year by 2025, Bijan Namdar Zanganeh, the Islamic Republic's oil minister said.
Zanganeh made the remarks while addressing the 12th Iran Petrochemical Forum (IPF 2015) which opened Dec. 13 in Tehran, the oil ministry's official SHANA news agency reported.
He further said that Iran is planning a giant leap in its petrochemical industry following the removal of sanction.
Iran expects the sanctions to be lifted at the first of coming year, as it is adhering to the terms of a July nuclear deal clinched between Tehran and the World's six major powers.
Achieving the targets set by the country's 20-Year Outlook Plan (Islamic Republic's development outlook for 2025) in the petrochemical industry requires massive investment, modern technology, and marketing, Zanganeh said, adding the main targets in the petrochemical industry are supplying sustainable feedstock and construction of infrastructure.
He further said that abundant feedstock is one of advantages for investment in Iran's petrochemical industry.
Once the new phases of the South Pars gas field are completed by 2017, Iran will have enough ethane, propane and naphtha as feedstock for new petrochemical projects, he said.
Also, with the completion of refinery projects in the country over the next three years, there will be surplus kerosene and fuel oil that can be used as feedstock for petrochemical units as well, Zanganeh added.
The minister said that once the refinery projects are completed the ministry will be able to allocate more than 12 million tons of LPG, 4.5 million tons of ethane and 13 million tons of naphtha to petrochemical units in addition to the feedstock which is already allocated to the industry.
Enough natural gas is also available as feedstock as well, he said.
Zanganeh also stressed that Tehran gives priority for cooperating with the first-class companies to guarantee technology transfer.
"Foreign firms that used to have a representation in Iran can launch their branch here with their brand and select their strategic Iranian partners with our support," Zanganeh said.
Iran's petrochemical output hit 44.4 million tons in the past Iranian fiscal year (ended on March 20), 10 percent more year-on-year.
The country's actual production capacity is around 60 million tons, but the shortage of natural gas as feedstock, old production units, and the problem of sanctions, which has dropped exports, have caused petrochemical complexes to work at lower capacities.
Tehran hopes to use the IPF 2015 to attract foreign investors for its post-sanctions projects and plans aimed at boosting the petrochemical output capacity to over 138 million tons per year in 2020 and eventually to 180 million tons per year by 2025 with an investment of over $80 billion.