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Iran’s annual petrochemical output to reach $22B

Business Materials 25 September 2014 16:16 (UTC +04:00)

Baku, Azerbaijan, Sept. 25

By Umid Niayesh - Trend:

Iranian oil minister, Bijan Namdar Zanganeh forecast that the value of Iran's petrochemical output would reach $22 billion during the current fiscal year (March 21, 2014- March 21, 2015).

The country produced $1 billion worth of petrochemicals in 1997 and if the forecast output level for this year is realized, it will be a huge leap in the petrochemical industry, the country's SHANA news agency reported Sept. 25.

Zanganeh added that the Islamic Republic plans to increase petrochemical production capacity to worth of $70 billion per year by 2025, adding over $70 billion should be invested in the sector to materialize the figure.

Above 40 million metric tons of petrochemical products were produced in Iran during the last fiscal year (ended on March 21), which means $9 billion of income for Iran.

Iran's oil and petrochemical exports have increased following some sanctions relief on the Islamic Republic, including the EU and US bans on the country's petrochemical exports, thanks to Geneva nuclear deal which took effect on Jan 20.

Iran exported $5.7 billion worth of petrochemical products during first five months of the current fiscal year(March 21-Aug. 22), indicating a 29 percent increase year on year, according to the Custom Administration's latest monthly report published Sept. 2.

Currently there are some 71 unfinished petrochemical projects in the country. The projects are averagely 27 percent complete, according to the officials.

Some $33 billion is needed to be invested in Iran's petrochemical sector, in order to increase the country's output by 55 million metric tons, SHANA reported.

Once the projects come on stream, the country would annually earn some $26 billion.

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