Petrochemical investors welcome 13-cent worth feed
Baku, Azerbaijan, Feb. 28
By Khalid Kazimov - Trend:
Urea-ammonia and methanol projects are economically justifiable with the 13-cent price at which the government is feeding the production units, National Iranian Petrochemical Co. Projects Manager Marzieh Shahdaei said.
She added that based on this, there is very good opportunity for investing in similar projects, Fars news agency reported Feb. 28.
These projects have exchange paybacks of 25 to 26 percent, she noted.
Shahdaei said that the prices of 13 cents for feed and 1,320 rials (2,760 rials making 1 USD) for fuel are not fixed and are to be decided upon in the coming months.
She stated that the petrochemical company does not welcome urea-ammonia projects anymore since domestic and regional markets are full.
But methanol is still welcomed because there is market for it and its value chain is changeable to propylene through GTP, she said.
Previously, Shahdaei said Iran will feed 21 percent of its natural gas output to domestic petrochemical units by 2025.
She added that 86 billion cubic meters of natural gas, equaling 21 percent of the country's total gas output, will be supplied to the country's petrochemical units by that time.
Most petrochemical share holders have announced that in case the feed grows in price beyond 13 cents, the production units will be no more economically feasible.
Iranian Minister of Industries, Mines and Trade Mohammad Reza Nematzadeh said on Sept. 25 that the Islamic Republic should determine the long-term gas prices for petrochemical units, in order to attract investments to the sector.
If the prices are set for a long-term period, the foreign and domestic investors will be able to study the profitability of the petrochemical projects and make the decision, he said.