Iran plans to reduce petrochemical imports in favor of domestic production

Oil&Gas Materials 5 October 2021 15:58 (UTC +04:00)
Iran plans to reduce petrochemical imports in favor of domestic production

BAKU, Azerbaijan, Oct. 5

By Elnur Baghishov – Trend:

Iran plans to put into operation facilities to produce of 3.5 million tons of petrochemical goods per year, which will reduce Iran's imports by about 70 percent, Director of the Planning and Development Department of the Iranian National Petrochemical Company (NPC), Hassan Abbaszadeh told IRNA, Trend reports.

“About 2 million tons of the mentioned 3.5 million tons accounts for propylene products," he said.

Abbaszadeh said that about $3 billion is needed for the launch of new petrochemical facilities, while some $1.8 billion is needed for facilities that will produce propylene products only.

The director noted that Iran imported $1.3 billion worth of petrochemical products over the last Iranian year (March 20, 2020 through March 20, 2021) that could not be manufactured domestically.

As reported, Iran is planning to export 33 million tons of petrochemical products worth $14.2 billion in the current Iranian year (from March 21, 2021, through March 20, 2022). It is planned to produce 43 million tons of final products in the current Iranian year. About 10 million tons of it will be consumed in the country. In general, the revenues of the petrochemical industry will amount to $21.5 billion this year.

Starting from the second half of the next Iranian year (August 23, 2022), 39 petrochemical facilities are to be put into operation in the petrochemical sector of Iran. In total, 50 facilities are to be put into operation in the next 5 years (until March 20, 2026). Of these, 3 facilities are related to production of mixed fuels, 11 facilities – propylene, and 33 are development facilities.

Iran's annual petrochemical production potential will increase to 136 million tons in five years, and to 167 million tons with the implementation of strategic plans.

In total, 17 petrochemical facilities at a cost of $11.4 billion were put into operation in the country over the last Iranian year (from March 20, 2020, through March 20, 2021). Thus, the annual production of Iran's petrochemical sector increased from 65 million tons to 90 million tons.


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