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Iran Petchem Industry Remains Resilient Amid Global Challenges

Iran Petchem Industry Remains Resilient Amid Global Challenges
(Sunday, October 6, 2024) 17:08

TEHRAN (NIPNA) – The acting head of the National Petrochemical Company, Hassan Abbaszadeh, assured the public on Sunday that the Iranian oil sector faces no alarming threats, highlighting a promising outlook for foreign exchange earnings from petrochemical exports.

Speaking at the Second Process Safety Management Conference, Abbaszadeh emphasized the advanced safety protocols in Iran's petrochemical sector.

He stated that despite global pressures, the country's diverse petrochemical production and markets are set to yield strong export revenues by the end of the Iranian calendar year 1403 (March 2025).

"Given the significant capacity for methanol production in Iran, we are actively pursuing projects to convert methanol to gasoline (MTG) as a viable solution to address fuel supply imbalances," he noted.

Abbaszadeh underscored the importance of managing fuel consumption, suggesting that while MTG technology is a key strategy, other methods could also enhance domestic gasoline production. He revealed that a team was dispatched last year to negotiate the acquisition of MTG technology from a leading country, resulting in five companies currently registered to establish MTG facilities in Iran.

As part of the government's incentive framework, Abbaszadeh announced a sliding discount of approximately 16-17% for these projects, aimed at enhancing their viability.

He explained that second-hand MTG units could also be imported, provided they comply with the National Petrochemical Company's standards. This approach allows investors to bring a unit into operation within approximately 18 months, compared to a three-year timeline for new facilities.

Abbaszadeh further stated that the capacity for each MTG unit stands at 200,000 tons, with plans for the National Petrochemical Company to issue permits for up to eight such units.

Addressing regional security concerns, particularly threats from Israel against Iran's oil industry, Abbaszadeh reassured that Iran’s military capabilities provide a robust defense. He characterized the recent visit by the Minister of Oil to the Pars region as a routine operational trip, emphasizing the necessity for ongoing precautionary measures in the petrochemical sector.

While the petrochemical industry is at the forefront of process safety, the presence of hazardous materials necessitates heightened vigilance,” he remarked.

Abbaszadeh concluded by reaffirming that, despite international sanctions, there are no barriers to exporting petrochemical products, which are being sent to various countries, promising a solid influx of foreign currency for the nation in the coming year.

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