News Agency - Detail

Construction of Key Petchem Plant to Begin

Construction of Key Petchem Plant to Begin
(Sunday, February 28, 2021) 19:16

TEHRAN (NIPNA) – Iranian President Hassan Rouhani is scheduled to order construction of a strategic petrochemical project on Monday morning via videoconference.

The CEO of Parsian Oil and Gas Development Group called Kian Petrochemical project one of the most strategic petrochemical plants in the country in line with the sustainable development of the petrochemical industry and creation of highly value-added projects, and said the first phase of the facility would come online on Monday, February, 29.

Vahid Mahmoudi stated Kian Petrochemical project includes a set of olefin and downstream units that have a high added value in the petrochemical industry compared to existing chains.

He added: "Kian Petrochemical Plant is designed in two phases, the first phase will be heavy olefin and polyethylene units and the second phase will be propylene oxide, ethyl benzene and styrene monomer units and oxo alcohol units; the total investment of phases one and two is about 3.5 billion euros."

The CEO of Parsian Oil and Gas Development Group pointed to the implementation of this project in the second phase of Assaluyeh Petrochemical Special Zone, and said 60% of this company belongs to Parsian Oil and Gas Development Holding and 40% belongs to Petrofarhang Holding.

27% Return on Investment

Mahmoudi stated that the contractor of the Olefin unit is OIEC Company which has developed it under an EPCC contract, adding that the amount of this contract is 1 billion and 360 million euros and the license of this unit is from the Germany’s Linde.

The CEO of Parsian Oil and Gas Development Group Company, pointing out that 450,000 tons of ethylene and 450,000 tons of heavy polyethylene will be produced in the heavy polyethylene unit, continued: Nargan Company is the contractor of this unit under an EPCC contract with an investment of about 8. 5 million euros.

Mahmoudi stated that the rate of return on capital of Kian Petrochemical Plant is 27%, and said: "This project is one of the most attractive projects in terms of rate on return and in terms of unit size and having a collection from olefins to heavy and low polyethylene products, it is one of the largest projects ever built [in the country]."

Emphasizing that the priority of his holding is to use domestic forces, Mahmoudi said: "In the implementation of Kian Petrochemical project, maximum efforts will be made to use domestic production, and this project, as one of the largest petrochemical projects in the country, will create employment for about 3,000 people during construction and operation phases."

Email is required
Characters left: 500
Comment is required