NPC News Bulletin May-June.2005 No.63

President Khatami inaugurates a wave of NPC projects

In a landmark ceremony held on 11 June 2005, Iranian President Seyyed Mohammad Khatami inaugurated five petrochemical projects located at
Bandar Imam Petrochemical Special Economic Zone, on the northern coast of the Persian Gulf, south of Iran.The projects included 4 NPC facilities and one privately owned plant. The NPC projects were Amir Kabir or olefin no. 6, Buali Sina or aromatics no. 3, Shahid Tondguyans first PTA/PET complex and a tank farm facility. The fifth project is owned privately by Navid Zar Chimi Company.

Addressing the inaugural ceremony, President Khatami said when he took office in 1997, his government decided to define afresh the oil utilization policy in the country not as a disposable commodity rather as a buttress for development to convert
this underground wealth to a wealth on the groundand generate added value. On this basis, he said, attention was given to expanding the petrochemical industry.

Khatami said
In 1998-99, we announced that we want to boost investment in the petrochemical industry to increase our export revenues to $3bn, adding that in the context of such a decision, today, in both Bandar Imam Khomeini and Assaluyeh we can witness the emergence of one of the symbols of the countrys industrial prides and entrepreneurship.

President Khatami said petrochemical sector had a sublime place in Irans non-oil exports noting that it had transformed into a major industrial hub in the country.

He lauded the achievements in the Iranian petrochemical industry and thanked and commended Petroleum Minister, Bijan Namdar Zanganeh and, Deputy Petroleum Minister & NPC president, Mohammad Reza Nematzadeh for their leadership and management in developing the petrochemical industry.

Also speaking at the ceremony, Zanganeh said in the past 8 years, some $18bn, including $12bn in foreign currency, has been invested in Iran
s petrochemical industry. He said in 1997, NPCs sales was $1bn adding that the figure jumped to $3.3bn in the past Iranian year which ended on 20 March 2005. Zanganeh said the sales revenue would reach $5.1bn by the end of March 2006 and in 2007 it would rise to $8.5bn. Petroleum Minister noted that NPC has planned to produce 75m tonne/year of petrochemicals and has targeted sales of $20bn by 2014.

Amir Kabir Petrochemical Company has implemented olefin No. 6 in a 55 hectares area. The complex produces 520,000 tonne/year of ethylene, 158,000 tonne/year of propylene, 20,000 tonne/year of butene-1, 300,000 tonne/year of linear low-density/high-density polyethylene (lldPE/hdPE), 137,000 tonne/year of pyrolysis gasoline, 51,000 tonne/year of 1-3 butadiene and 24,000 tonne/year of CFO. The Companys 140,000 tonne/year hdPE plant was brought onstream in 2002.

Amir Kabir is also building a 300,000 tonne/year low-density polyethylene (ldPE) plant. It has appointed a consortium consisting of SembCorp Simon-Carves, Daelim Industrial and local contractor Namvaran to carry out engineering, procurement and construction work. The plant is expected to become operational in 2007

The propylene produced at Amir Kabir will be transferred to the nearby Navid Zar Chimi Co. for the production of polypropylene.

Amir Kabir required feedstocks include ethane, butane, raffinate (aromatics), C5cut, light ends and butene-1, ethylene and LPG which will be supplied by facilities at the Zone.

Amir Kabir is 56% owned by NPC, 15% by Ministry or Petroleum
s Pension Fund, 20% by Social Security Organization, 4% by National Pension Fund and 5% by other investors.

The first phase of
a purified terephthalic acid (PTA) and polyethylene terephthalate (PET) complex has been implemented and is run by Shahid Tondguyan Petrochemical Company (STPC).

The PTA/PET-1 covers an area of 15.7 hectares, it is 85% owned by NPC and the remaining 15% belongs to Ministry of Petroleum
s Pension Fund.

The facility produces 350,000 tonne/year of PTA and 412,000 tonne/year of PET inclusive of 235,000 tonne/year of fiber grade PET and 177,000 tonne/year of bottle grade PET.

The plant consumes paraxylene, acetic acid and ethylene glycol which are supplied domestically. Its products are used in the production of polyester fibers for textile industry, packing industry and foodstuff containers.

Aromatics No. 3 has been carried out and is being run by an NPCs subsidiary, Bouali Sina Petrochemical Co. The facility started to yield on-spec product on 2 May 2005. The project has the capacity to produce 400,000 tonne/year of PX, 30,000 tonne/year of orthoxylene, 179,000 tonne/year of benzene.

The PX output is meant to feed the nearby Shahid Tondguyan
s PTA units. The facility also produces 199,000 tonne/year of raffinate, 23,000 tonne/year of heavy aromatics, 39,000 tonne/year of LPG, 350,000 tonne/year of light ends, 488,000 tonne/year of heavy ends and 21,000 tonne/year of C5 cut per year. It consumes condensates as well as pyrolysis gasoline as its feedstock.

The first phase of the plant, including the pre-fractionation unit, was completed and brought onstream in late 2003, and the second phase was completed in the third quarter of 2004. Implementation activities at the plant commenced in early 2000.

The project
s output is also used to produce pharmaceuticals, insecticides, styrene monomer, ethylbenzene, LAB, phenol which is feed for producing nylon, solvents and a number of other chemicals.

The tank farm facility has been built to cater for the import requirements and the export of products of petrochemical plants as well as swapping the products there. The 27-hectare facility is located at site No. 5 of the Petrochemical Special Economic Zone. It contains 19 storage tanks which will handle 117,000 tonnes of liquid petrochemicals. The capacity of the smallest and largest tanks ranges between 2,000 to 15,000 tonnes. A network of pipelines connects the tank farm to an export jetty.

The tanks will store products such as acetic acid, di-ethylene glycol (DEG), phenol, epichlorohydrin, aceton, orthoxylene (OX), 2-ethyl hexanol (2EH), dripoline pyrolysis gasoline (DPG), naphtha, heavy-end aromatics and vinyl acetate monomer (VAM). They will also be used for the storage and export of products from other petrochemical plants including Tabriz, Esfahan and Arak complexes that are not located at the Zone.

Apart from the two 15,000-tonne capacity tanks which are earmarked for the export of heavy-end aromatics from Buali Sina complex, the remaining tanks will serve a dual purpose of exporting and importing products.

Four loading arms have been installed for truck loading while barrel-loading equipment has also been built there. Meanwhile, the possibility of constructing rail links for transportation of products has also been envisioned.

Implementation work on this project began in 2001 and it was put into operation in early 2004 by storing heavy-end aromatics from Buali Sina complex. Privately-owned
Navid Zar Chimi has also been officially opened by President Khatami. It has a 160,000 tonne/year polypropylene (PP) unit in an area of 5.6 hectares adjacent to Amir Kabir Petrochemical Co. Navid Zar Chimi receives propylene feedstock from Amir Kabir. Prior to Amir Kabirs coming onstream, it received its feedstock from Bandar Imam Petrochemical Co.

NPC News Bulletin July 2005 No.65

NPC buys majority stake in Bataan Polyethylene Plant

An NPC subsidiary, NPC International (NPCI) has agreed to acquire a 60 percent stake in a new company that will take over the Philippines' Bataan Polyethylene (BPC) located in the main island of Luzon. NPCI signed the share purchase deal with the Filipino group Metro Alliance Holdings and Equities. The new company is named
NPC Alliance Corp. BPC owns a 275,000 tonne/year linear low-density polyethylene (lldPE)/high-density polyethylene (hdPE) swing plant. NPCI and Metro Alliance Holdings and Equities had earlier signed a long-term contract for the supply of feedstock to the BPC.



 バターン・ポリエチレンは当初、BP(39%)、マレーシアのペトロナス(39%)、住友商事(6%)、地元コンソーシアムProfinda Holdings(16%)のJVとして設立され、LL/HDPEスイングの275千トンのプラントを所有している。





Iran invests $125m in Philippines

The Director of Iran's International Petrochemical Company says Iran has invested $125 million in the Philippines petrochemical industry.

In an interview with IRNA on Tuesday, Mohammad Hadi Rahbari said the International Petrochemical Company has invested in a polyethylene company in the Philippines, which was renamed NPC-Alliance, to tune of 20 percent of its shares. 40 percent of the shares were bought by Iran's National Petrochemical Company (NPC) and the remaining 40 percent by the Philippines Polimax company.

National Petrochemical Company 40%
International Petrochemical Company 20%
Philippines Polimax 40%

This unit, whose target markets are the Philippines, Southeast Asia and Europe, produces 225 thousand tons of heavy polyethylene annually.

The International Petrochemical Company is a subsidiary of the National Petrochemical Company (NPC), which was founded in 1964. Today, NPC is the second largest producer and exporter of petrochemicals in the Middle East.

November 28, 2005 Manila Times

Iranian firm to invest in petrochem

An Iranian petrochemical company is expected to make fresh investments in the Philippines to revive a mothballed polyethylene production plant in Bataan, the Board of Investments (BOI) said.

The National Petrochemical Co., a subsidiary of Irans petrochemical giant NPC International, has agreed to infuse $100 million to reopen the Bataan Polyethylene Corp. (BPC) after buying out 60-percent stake of the NPC Alliance Corp. of the Gatchalian-owned firm Metro Alliance Holdings and Equities.

An official said the BOI will continue to give all the incentives earlier given to BPC because BOI policy allows for the transfer of incentives to a registered company.

However, since the BPC stopped its operations for one year, a new set of incentives would be given to the new operator, the BOI said.

This is a first major Iranian investment in the country, which is expected to further develop the local petrochemical industry,the official said.

With the Iranian firms entry, the Gatchalian group is now limited to a 40-percent stake in the NPC Alliance Corp.

Since Iran is a giant in the petrochemical business, the Philippines is already assured of technology transfer, the official said, adding that the joint venture is now eyeing to engage in downstream petrochemical production. Naphtha cracker production, however, is still not an option.

Earlier, NPC International Inc. (NCPI), an NPC subsidiary, signed the share-purchase agreement early this year with the Gatchalian group to operate the BPC.

NPCI and Metro Alliance Holdings and Equities had previously agreed to a long-term contract for the supply of feedstock to the BPC, which owns 275,000 ton/year linear low-density polyethylene (lldPE)/high-density polyethylene (hdPE) swing plant.

The plant, located at the PPDC Petrochemical Park in Mariveles, Bataan, ceased operations in August 2002, a year after it started commercial operation in February 2001.

Iran Daily 2006/9/23  

Joint Petrochemical Company Planned With Venezuela      VenIran Petrochemical Company

Venezuelan & Iranian Petrochemical Co. (VIPC)
In Iran  : NPC 51%/Pequiven 49%  : Methanol 3.3m tonne/year
1.65m tonne
 : Assalouyeh, Iran
In Venezuela   NPC 49%/Pequiven 51%   Methanol 3.3m tonne/year
1.65m tonne
  Zigma in Venezuela
Total investment $1.6 billion shared on a 50/50 basis    

An Iranian-Venezuelan petrochemical company will be established in Iran, announced a senior petrochemical industry official here Saturday, IRIB News reported.
Asghar Ebrahimi-Asl, managing director of National Iranian Petrochemical Industries Company, said that the Iranian company will hold a 51 percent stake of the joint company while the Venezuelan Petrochemical Company will hold the rest.
He further noted that the two states will also set up a petrochemical joint company in Venezuela in which Iran will have a 49 stake.
Two methanol units with a collective capacity of 6.6 million tons will be built in Iran and Venezuela, he said, adding that the said units will have the same features as Zagros Petrochemical Company in Asalouyeh, Bushehr province.
Some $1.6 billion will be required to establish the units, thus the Iran and Venezuela are to invest in the lucrative projects on a 50-50 basis.
Once the methanol units become operational, Iran will gain access to Latin American markets, especially in Brazil, while Venezuela will be able to reach Middle East markets, particularly those in India and Pakistan,he analyzed.
Ebrahimi-Asl said that 40 hectares in Sigma Industrial Zone has been allocated to the Venezuelan-based methanol unit, adding that the two friendly states will expand cooperation by establishing two fertilizer companies in the near future.

July 02, 2007 IRNA

Iran-Venezuela presidents break ground for methanol complex

Iran's President Mahmoud Ahmadinejad and his Venezuelan counterpart Hugo Chavez are to take part in a ceremony to break the ground for construction of a joint methanol complex on Monday.

According to the Public Relations Department of the National Petrochemical Company (NPC), the methanol complex will annually produce
one million tons of methanol 1.65 million tons が正しい) with the cooperation of the National Petrochemical Industries Company of Iran and the Venezuelan Petrochemical Company.   

The complex lays in the Pars Special Economic Energy Zone.

After establishing Iran-Venezuela joint petrochemical company, the two countries will construct a methanol unit
in the southern area of Assalouyeh, Iran, and another one in industrial zone of Zigma in Venezuela, the report said.

The two sides will benefit from establishing the methanol units including easy access to the markets of Latin America and Brazil as well as Pakistan and India.

Iranian Oil Minister Kazem Vaziri Hamaneh and a number of officials active in petrochemical and oil sectors will accompany Ahmadinejad and Chavez at the ceremony of breaking ground for methanol project.

2007/7/3 日本経済新聞夕刊

イランとベネズエラ 経済協力で合意 合弁メタノール工場建設


Jul 2, 2007 Reuters

Iran, Venezuela in "axis of unity" against U.S

The presidents of Iran and Venezuela launched construction of a joint petrochemical plant on Monday, strengthening an "axis of unity" between two oil-rich nations staunchly opposed to the United States.

Venezuela's Hugo Chavez and Iran's Mahmoud Ahmadinejad, who both often rail against Washington, also signed a series of other deals to
expand economic cooperation, ranging from setting up a dairy factory in Venezuela to forming an oil company.

The two presidents -- whose countries are members of the OPEC oil producing cartel -- earlier attended
the ceremony to start building a methanol facility with an annual capacity of 1.65 million tons on the Islamic Republic's Gulf coast.

Iranian officials said a
second methanol plant would be set up in Venezuela. Each would cost about $650 million to $700 million and take four years to complete. Methanol is an alcohol which can be used as a solvent or an element in fuel.

That would help Iran to
access the Latin American market, while Venezuela would get closer to buyers in India and Pakistan.

Apr14 2007   

Iranians in China for oil project

Iran will send a top-level delegation to China to continue talks with the Sinopec Corp. over developing the Yadavaran Oilfield in south Iran.

Also, Chen Tonghai, the president of the China Petroleum and Chemical Corporation, known as Sinopec, has said t
he company is in talks on providing engineering services to the Yadavaran field.

The state-owned Sinopec Group was
not looking for an equity stake in the Yadavaran field, but if a deal is reached it would share profits from the field once it begins production, he told reporters during a news conference in Hong Kong following the release of the company's 2006 financial results.

Reuters April 9, 2007

The two sides have failed to agree on final terms, and a senior industry official familiar with the discussions said in Singapore last year that a deal would be delayed because of a price disagreement.




May 01, 2007

NPC CHIEF:Iran to Invest Over $12bn in Petrochemical Sector

The managing director of National Petrochemical Company (NPC) said Iran would make a 12.3 billion dollar investment in the sector in the Fifth Five-Year Socioeconomic Development Plan (2010-2015).
Gholam-Hossein Nejabat said his company would invest the huge sum in 27 petrochemical projects during the Fifth Plan, out of which 9.2 billion dollars would be funded by hard currencies.

Nejabat said 24 petrochemical projects with a 14.8 billion dollar fund had been included in the Fourth Five-Year Development Plan (2005-2010), with some becoming operational.
The NPC head said 13 petrochemical projects would come on stream in the current year, adding three of them were ready for inauguration.
 2007/4/12 「イランで本年度 11計画が生産開始」 

At present, Iran accounts for 12 percent of the Middle Easts petrochemical output, valued at 25 billion dollars, and the share will touch 34 percent by the end of 20-year Outlook Plan, 2015,said Nejabat.

September 05, 2007 Jakarta Post

Pusri to build plant in Iran

PT Pupuk Sriwijaya (Pusri), the country's largest fertilizer producer, is scheduled to sign an agreement with an Iranian petrochemical company later this week to help bring to fruition its plan to build a fertilizer plant in Iran.

Iranian ambassador to Indonesia Behrouz Kamalvand said Tuesday that an agreement would be signed between Pusri and National Petrochemical Company International for the construction of the plant, which will be located in Tehran and cost some US$600 million.

Mahmoud R. Radboy, head of the Iranian embassy's economic section, said that the two companies would have equal participating interests in the project

"It is agreed that 50 percent of the production will be dedicated to the Indonesian market and the rest will be sold on the international market, although it is up to the companies to decide which international markets they want to serve," Radboy said.

The gas supply will come from the South Pars gas field, which holds 8 percent of total world gas reserves, via a pipeline at a price of $1 per million British thermal units (mmbtu).

PT. Pupuk Sriwidjaja (Persero), otherwise known as PT Pusri, is a State-Owned Enterprise with a business in the production and marketing of fertilizers. PT Pusri was legally established through Eliza Pondaag Notarial Decree No. 177 dated December 24, 1959 and published in the State Gazette No. 46 of June 7, 1960. PT Pusri, with its Head Office and Production Center at Palembang, South Sumatera, is the first producer of urea fertilizer in Indonesia.

September 28th 2007

President of Iran Visits Venezuela and Signs Economic Agreements

The President of Iran, Mahmoud Ahmadinejad, arrived in Caracas late Thursday night for a short meeting with Venezuelan President Hugo Chavez. Both leaders emphasized the importance of unity and cooperation in the "fight against U.S.Venezuela and Iran. imperialism" and signed several more bilateral agreements to build joint projects in Venezuela and Iran.

On this occasion, the agreements they signed include
the installation of nine corn-processing plants in Venezuela with Iranian technology, part of the new initiative of the Venezuelan government to increase the production of corn and corn flour in the country. These plants for processing corn will be placed in corn-producing regions and run by the surrounding communities.

Another of the agreements is for the establishment of
an industrial complex for the production of auto parts in the central state of Carabobo. The agreement was signed between the Iranian company Behsazin and the Venezuelan Ministry of Communal Economy with the intention of supplying national industry with nationally produced auto parts.

A third agreement has to do with the petrochemical industry and allows for the construction of
two plants for the production of methane gas, one in Iran and the other in Venezuela.

Joint Petrochemical Company Planned With Venezuela

2008/3/8 MINA

Three petrochemical projects inaugurated in southern Iran

Three huge petrochemical projects at Razi, Laleh, and Shahid Tondguyan petrochemical complexes in Mahshahr, southern Iran, came on stream on Thursday in a ceremony attended by President Mahmud Ahmadinejad.

The third ammonia producing unit of Razi Petrochemical Complex, in which 142 million euros and 540 billion rials (57.7 million dollars) have been invested, will produce 680,000 tons of ammonia annually.
The project is under the license of a Swiss company and Iran
s Petrochemical Designing and Engineering Company does logistical affairs.
Executive operations of the project began in 2002 in an area of six hectares in Mahshahr.

low-density polyethylene (LDPE) producing unit of Laleh Petrochemical Complex, in which 240 million dollars and 250 billion rials (26.7 million dollars) have been invested, will produce 300,000 tons of LDPE yearly.

second pure terephthalic acid / polyethylene terephthalate (PET/PTA) producing unit at Tondguyan Petrochemical Company has the capacity of producing 750,000 tons of polyethylene terephthalate annually, the executive operations of which started in 2000 in an area of 18 hectares.
    (PTA 350/PET 400)
The National Petrochemical Company (NPC) boosted its output to 23 million tons in 2007 from 15 million tons in 2004, its managing director said.

Gholamhossein Nejabat added five million tons of products worth 2.4 billion dollars have been added to the NPC
s production capacity since 2006.
Iran's current petrochemical output is worth 8.5 billion dollars, he said, adding out of the figure $5.5 billion is for exports, while the remaining $3 billion is for domestic sale.

East and Southeast Asia, the Middle East, India, China, and Europe are the major foreign markets for Iran's petrochemical products, he added.

Iran wants to raise its share of petrochemical output in the Middle East to 32% and in the world market to 6.1% in accordance with the 20-Year Outlook Plan, Nejabat said, adding that Iran needs to increase its current output capacity by 300 percent in 17 years to achieve this goal, Press TV reported.

The NPC is a subsidiary of Iran's Petroleum Ministry. It is responsible for operation and development of the country's petrochemical sector.

2008/05/06 MNA

Iran, India ink Euro 400m petrochemical MOU

National Iranian Petrochemical Company (NIPC) signed a Memorandum of Understanding with India
s Nagarjuna Fertilizers and Chemicals Limited Company (NFCL) in Tehran on Monday for the construction of a joint urea and ammonia complex in the Pars Special Economic Energy Zone (second phase of Assaluyeh).

The complex
s nominal production capacity will be 2,200 tons of urea and 3,860 tons of ammonia per day, PIN reported.

The estimated budget for the project is 400 million euro.

NFCL and NIPC are considered as experienced companies in both establishing and developing chemical fertilizer producing plants.

Apr 23, 2009    

Turkey 'to build petrochemical plant in Iran'

A Turkish chemicals producer reportedly plans to build a petrochemical plant in Iran in defiance of unilateral US sanctions against Tehran.

Petrochemical Holding Corp. (Petkim) says it has reached an agreement with Iran's National Petrochemical Company (NPC) to set up a methanol and polyethylene facility.

The partnership between Petkim and the Iranian company will be a 50-50 joint venture, Petkim said in a statement to the stock exchange.

The plant will produce 1.65 million tons of methanol and 300,000 tons of polyethylene per year.

Petkim is partly-owned by the Turkish energy company Turcas and the
Azerbaijani state-owned oil firm Socar.

In recent years, Tehran and Ankara have increased their energy cooperation with Turkish companies carrying out various projects to develop the giant South Pars gas field in southern Iran.

The report comes as US lawmakers have introduced legislation that would impose an embargo on gasoline exports from third countries to Iran to punish the country for enrichment -- which Tehran says is directed at electricity generation.

The bill is also expected to limit European participation in projects pertinent to the Iranian petroleum sector.

Similar extraterritorial measures taken by the US have in the past drawn the ire of even stalwart US allies such as the European Union, which sees such punitive moves as interference in their internal affairs and trading practices.

The introduction of the bill comes at a time when the Obama White House claims it is reviewing US policy toward Tehran. Prospects of US-Iran rapprochement have not been well-received among Israeli circles and their powerful lobby in the US.

Oct 12, 2015 

Iran wants Japan’s big petchem firms back

Iran said on Monday that it welcomes the return of Japan’s Mitsubishi and Mitsui to its petrochemical projects.

Abbas Sheri-Moqaddam, the managing director of the National Petrochemical Company (NPC), said Mitsubishi and Mitsui had a satisfactory performance in different sections of Iran’s petrochemical industry.

Sheri-Moqaddam, speaking in a meeting with the heads of the two companies who are in Tehran on board a senior Japanese trade delegation, added that they can again participate in Iran’s projects once the sanctions against the country are lifted.



He said there is a significant potential for investment in Iran’s petrochemical industry, adding that investments in this sector promise lucrative returns.

Sheri-Moqaddam said Phase 2 of Assaluyeh and Mahshahr energy zones in southern Iran as well as Chabahar in southeastern Iran are specifically attractive options for investors.

The heads of Mitsubishi and Mitsui for their part said they are ready to resume investments in Iran once the sanctions against the country are lifted.

The petrochemical industry is the biggest source of foreign earnings for Iran after oil but US sanctions have caused exports to decline. Officials have said about $70 billion of investment is needed in the sector over the next 10 years.

Iran’s total petrochemical production capacity stands at 60 million metric tons per year which the country plans to double.

A top-level trade and diplomatic delegation from Japan is in Iran on a five-day visit in search for avenues to boost mutual cooperation in various enterprises. The delegation, which is led by Foreign Minister Fumio Kishida, arrived in Tehran on Sunday.