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Iran Projects Petchem Exports of 34mt in 2024, Capacity Increase to 186mt

Iran Projects Petchem Exports of 34mt in 2024, Capacity Increase to 186mt
(Saturday, August 10, 2024) 14:57

TEHRAN (NIPNA) – The National Petrochemical Company (NPC) forecasts a production of 83 million tons and exports of 34 million tons of petrochemical products in 2024, according to Hassan Abbaszadeh, the company's Planning and Development Manager.

Abbaszadeh announced that the petrochemical industry's capacity will reach 103 million tons by the end of 2024, with 83 million tons expected to be produced this year, of which 48 million tons will be sold domestically.

He outlined the sector's development plans at the closing ceremony of the 15th International Petrochemical Industry Conference in Iran.

The official noted that approximately 34 million tons are projected for export, while around 14 million tons will cater to the domestic market.

Identifying Saudi Arabia as Iran's primary regional competitor, Abbaszadeh compared the two nations' production capacities, stating that both countries have a capacity of approximately 7 million tons for ammonia. However, he highlighted that Iran's capabilities in methanol production are about twice that of Saudi Arabia, with Iran producing 16 million tons compared to Saudi Arabia's 8 million tons.

He further detailed that Saudi Arabia's ethylene production capacity stands at 18 million tons, while Iran's is 8 million tons. He emphasized the importance of increasing propylene production, stating that Iran currently produces less than 1 million tons of propylene due to its reliance on ethane for ethylene production. In contrast, Saudi Arabia, with its higher ethylene output, produces around 7 million tons of propylene.

Describing propylene as a cornerstone of the value chain, Abbaszadeh lamented the low propylene production in Iran as a significant factor hindering the completion of the value chain. He urged the industry to leverage its 16 million tons of methanol capacity to increase propylene production.

He projected that Iran's petrochemical production will reach 74 million tons in 2024, including 10 million tons of methanol, 5 million tons of ammonia, 7 million tons of ethylene, and approximately 8 million tons of urea.

Looking ahead, Abbaszadeh stated that around 60 to 61 petrochemical projects are expected to be completed under the Seventh Development Plan, creating 35 million tons of capacity. Currently, these projects are over 50% complete and require about $24 billion in investment.

He indicated that the Eighth Development Plan will add another 48 million tons of capacity, with projects still in the early stages. This will increase the petrochemical capacity from the current 96 million tons to 132 million tons by the end of the Seventh Plan and 186 million tons by the conclusion of the Eighth Plan.

Abbaszadeh further detailed the expected changes in the industry over the next decade, projecting that current methanol production capacity of 16 million tons will rise to 34 million tons, with a portion used in GTP projects. He also forecasted an increase in ammonia production from 7 million tons to 10 million tons and a rise in polymer production from 9 million tons to 30 million tons.

Regarding natural gas feedstock supply, he noted that the petrochemical sector currently has the capacity to receive around 100 million cubic meters of gas daily, with an average of 70 million cubic meters received last year.

He emphasized the need for petrochemical industry stakeholders to pay close attention to the Seventh Development Plan, as several aspects will significantly impact the sector, including the transfer of shares by financial institutions and prioritizing gas extraction from flare gas recovery projects.

The 15th International Petrochemical Industry Conference, hosted by the National Petrochemical Company, saw widespread participation, with approximately 1,600 attendees on the first day and 1,000 on the second. Abbaszadeh noted that five foreign delegations participated in the event, contributing to specialized discussions.

The conference focused on "Clean Technology" and was held on August 14 and 15 at the IRIB Conference Hall in Tehran.

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