Iran’s petrochemical output surges

Business Materials 2 February 2016 17:34 (UTC +04:00)

Baku, Azerbaijan, Feb. 2

By Khalid Kazimov - Trend:

The total output of Iran's petrochemical plants reached 38 million tons over the Iranian calendar month of Day (22 December 2015 and 21 January 2016), a petrochemical official said.

Ali Mohammad Basaqzadeh, an official with Iran's National Petrochemical Company, said that the figure has increased by four percent year-on-year, SHANA news agency reported.

According to him, the amount of export of petrochemicals has increased by 26 percent in the mentioned period.

Speaking about the implementation of the Joint Comprehensive Plan of Action (JCPOA), he said the removal of international sanctions against Tehran has created a good chance for increasing exports as the costs of transport and money transfer have decreased.

He further estimated that the output of the petrochemical plants will increase by at least eight percent over the next Iranian fiscal year (starting March 21).

Iran's petrochemical output hit 44.4 million tons in the past Iranian fiscal year, 10 percent more year-on-year. Petrochemical plants in Iran had to work below the actual production capacity due to the shortage of natural gas as feedstock, old production units, and the problem of sanctions, which has caused a decline in exports.

Iranian petrochemical plants used 37 million cubic meters of gas as feedstock per day during the last fiscal year, which ended in March 2015.

The country's petrochemical output capacity currently stands at 60 million tons. The Islamic Republic hopes to bring this capacity to 120 million tons by 2020 and 180 million tons by 2025.

In a joint statement on Jan. 16, the EU High Representative Federica Mogherini and Iran's Foreign Minister Mohammad Javad Zarif announced the implementation of the JCPOA, aka nuclear deal, and the removal of economic sanctions on Iran. According to the statement, EU confirmed that legal framework, providing for lifting of its nuclear-related economic and
financial sanctions, is effective.