Price and market trends: Iran eyes 55m tonnes of petchems by 2020

02 May 2014 10:06 Source:ICIS Chemical Business

US sanctions have had a limited impact on petrochemical exports, according to NPC official

Several petrochemical plants currently under construction in Iran will bring on stream a total of 55m tonnes/year of new capacity by 2020, a senior official of Iran’s National Petrochemical Co (NPC) said on 25 April.

 

 Iran expects petrochemical capacities to soar

Copyright: Rex Features

Parts of the new capacity are projects located along the western pipeline which will supply ethane and feedstock ethylene to the upcoming projects, said NPC’s vice president & board member, MH Peyvandi, at the sidelines of Chinaplas, a four-day plastics and machinery exhibition in Shanghai which ended on 26 April.

Of the 55m tonnes/year of new petrochemical capacities, 6m tonnes/year of capacity will be started up between 2015 and 2016, Peyvandi told ICIS.

The new capacities scheduled to come on stream by 2016 will consist of 1.8m tonnes/year of polyethylene (PE) and 2m tonnes/year of methanol, with the balance made up of urea and ammonia, he said.

The US-led economic and financial sanctions on Iran have had limited impact on the country’s exports of petrochemicals such as methanol and PE, he said.

Sanctions are less effective on petrochemical producers because it is not easy for buyers to find alternative supplies at short notice, he said.

The role of NPC, a state-owned entity under the Ministry of Petroleum, had changed after the company divested its stakes in all its downstream subsidiary and affiliate companies in recent years, he said.

One of NPC’s current responsibilities is to lead the strategic and long-term planning of the domestic petrochemical industry, he said.

As part of its task to drive the strategic and long-term plans, NPC will be responsible for the feasibility studies of petrochemical projects in which the Iranian government owns some shares, and projects whose financing are arranged by the government, he added.


Iran’s Jam Petrochemical to export LLDPE to China
Jam Petrochemical plans to export 150,000 tonnes of linear low 
density polyethylene (LLDPE) to China this year, supplying from its 300,000 tonne/year high density PE (HDPE)/LLDPE swing plant in Iran, a company official said on 
25 April.

The company started producing LLDPE at the swing plant this year, after resolving some technical issues, said Jam Petrochemical’s head of sales and marketing, Mohsen Farah at the sidelines 
of Chinaplas.

Jam Petrochemical would still export HDPE resins, including injection, pipe and blow moulding grades to China this year, as the swing plant would still make HDPE grades, he said.

The company also has a 300,000 tonne/year plant that makes only HDPE resins, he said.

By Chow Bee Lin