Iran halts construction of cross-country ethylene pipeline

Oil&Gas Materials 1 July 2016 17:50 (UTC +04:00)

Tehran, Iran, July 1

By Mehdi Sepahvand – Trend:

The construction of Iran’s second cross-country ethylene pipeline has been halted, according to Deputy CEO of National Iranian Petrochemical Industries Co. Abdolhossein Bayat Qaem.

It was halted because the constructions of some petrochemical units that were meant to pour into the line are not progressing well, he said, Mehr news agency reported July 1.

“Firouzabad olefin factory, as well as Darab, Fasa, Jahrom, and Estahban polyethylene factories - none of them had a construction progress of 30 or 40 percent. That is why we can do nothing to build the pipeline,” the official stated.

The contract for building the ethylene pipeline was signed in 2011, according to which five petrochemical units were also to be built along the way.

The pipeline is 450 kilometers long and was estimated to need a budget of $285 million.

The news come despite the fact that new phases of the giant South Pars gas field are regularly coming on stream and there is going to be ample supply of the major petrochemical feed ethane.