ISLAMIC REPUBLIC OF IRAN
INDUSTRIAL SECTOR SURVEY
ON THE POTENTIAL FOR NON-OIL MANUFACTURED EXPORTS
Shiraz Petrochemical Complex (SPC)
This installation was
established in 1963 in the city of Shiraz and currently has a
production capacity of 1.9 million tonnes per year. It produces
ammonia, urea, ammonium nitrate, light and dense soda ash, sodium
bicarbonate, nitric acid, caustic soda, calcium hypochlorite,
hydrochloric acid, sodium hypochlorite, liquid chlorine, methanol
and argon. These products are used in crop production and glass
manufacturing; the bakery, pharmaceutical and military
industries; as gasoline additives; and in the production of
paints, thinners and pastes.
During the war with Iraq the chlor alkali unit of the Abadan complex was transferred to Shiraz and began production in 1988. The STPP and NPK/DAP units of the SPC are currently out of service, however, due to Iran’s dependence on imported rock phosphate and the lack of profitability of these units. In the Iranian year 1375 (21 March 1996 - 20 March 1997) the output of the SPC reached almost 1.8 million tonnes. This represented a utilization rate of 96% of the complex’s nominal capacity of 1.85 million tonnes, and amounted to 17.8% of the total output of all petrochemical complexes in Iran.
The complex employs more than 2,400 people and runs at a relatively high degree of efficiency. Apart from argon gas and methanol, which are exported if there is a surplus in excess of domestic consumption, all of the products produced by the SPC are consumed domestically. The complex is dependent on imports of spare parts and catalysts.
Kharg Petrochemical Complex (KPC)
This complex was
established in 1967 on Kharg Island in the Persian Gulf as an
export-oriented installation and has a production capacity of
430,000 tonnes per year. It produces propane, butane, pentane and
sulphur for use as fuel and in the production of sulphuric acid,
rubber and methanol. Most of the KPC’s output is exported.
The total production of this complex amounted to 417,009 tonnes in the Iranian year 1375, implying a utilization rate is of 97% its nominal capacity of 430,500 tonnes and representing 4.2% of the total output of the Iranian petrochemical industry.
The complex has a staff of some 370 and is comparatively efficient. It is dependent on foreign suppliers for spare parts and chemicals.
Bandar Imam Petrochemical Complex (BIPC)
This giant complex is
located in the port city of Bandar Imam Khomeini on the Persian
Gulf. It was initiated in 1973, as the Iran-Japan Petrochemical
Complex (IJPC), but was abandoned only months before its
commissioning on the eve of the Islamic revolution in 1979
despite the investment of vast amounts of money in the preceding
six years. The Japanese partners returned twice in the following
years to complete the project but eventually withdrew from their
partnership due to the war with Iraq, during which the
nearly-completed complex was severely damaged. The rehabilitation
of the BIPC began in 1989 after the end of the war, and the
complex’s LPG unit commenced production in
1991. Since then other units have come on stream and the project
is now complete. It has a production capacity of 4.4 million
tonnes per year and produces low-density and high-density
polyethylene, polypropylene, propylene, styrene butadiene rubber
(SBR), pyrolysis gasoline, ethylene dichloride, liquefied
petroleum gas (LPG), PVC, caustic soda, hydrochloric acid,
benzene, mixed xylenes and gas condensate. The complex’s products are used in the oil
industry, drilling, the steel industry, the production of
detergent, polymer, plastics, films, sheets, paint and pastes, as
well as being consumed as fuel.
This complex produced an output of 3.74 million tonnes in the Iranian year 1375, representing 37.4% of the total output of the NPC. It is regarded as being economically efficient, with its 1375 output implying a 93% utilization rate of its installed capacity of 4.04 million tonnes. The BIPC’s production of benzene, LPG, mixed xylene and pyrolysis gasoline is intended only for export, but its butadiene, caustic soda, ethylene, EDC, PVC, SBR and propylene have both domestic and export uses. The complex employs an an active workforce of more than 3,900 persons. Its PE production unit was awarded the ISO 9002 certificate from the Norwegian company Det Norske Veritas (DNV) in April 1998.
This plant is located in the port city of Mahshahr on the Persian Gulf. It was established in 1966 and has a production capacity of 3.7 million tonnes per year. It produces ammonia, urea, diammonium phosphate (DAP), sulphur and phosphoric and sulphuric acids, and also has the second-largest fertilizer unit in Iran. The products of the complex are used primarily in the domestic market in such fields as crop production, textile manufacturing, photography, the pharmaceutical and plastics industries and metal plating. After the start up of the Khorasan Petrochemical Complex (KhPC) in 1996, the surplus urea produced in this complex, amounting to some 67,000 tonnes, has been exported. The sulphur and sulphuric acid produced at this complex are also exported.
The output of the RPC amounted to 2.43 million tonnes in 1375 tonnes, which corresponded to 24.3% of the total output of the NPC. This output represented a relatively low utilization (66%) of the complex’s nominal capacity of 3.66 million tonnes, indicating considerable scope for an improvement in its operational efficiency. The plant employs almost 2,300 people.
Arak Petrochemical Complex (ArPC)
This complex was established in 1987 in the city of Arak with a production capacity of 1 million tonnes per year. It produces high-density and linear low-density polyethylene, polypropylene, acetic acid, vinyl acetate, polybutadiene, butadiene monomer, pyrolysis gasoline, butene-1, ethylene glycol, ethylene oxide, ethyl hexanol, ethanol amine and butanols. Of these, butanols, chloroacetyl chloride and propylene are produced for export. Acetic acid, alachlor, 2-ethyl hexanol, ehthylene glycol, polybutadiene, pyrolysis gasoline and vinyl acetate are produced for both the domestic and export markets.
The products manufactured in the ArPC are used in the plastics industry and in the production of film and cable, liquid detergent, polyester, footwear, pipes, anti-freeze, synthetic fibres and foams. The output of the complex was recorded at 896,115 tonnes in 1375. Compared to its nominal capacity of 1.07 million tonnes, this represented a reasonably efficient capacity utilization rate of 83.7%, and accounted for 9% of the NPC’s total production in the reported year. The complex has a workforce of almost 1,750 persons, and is scheduled to be further expanded in the coming years at a total investment estimate at about IR110 billion.
Isfahan Petrochemical Complex (IPC)
This complex was
established in 1989 on the outskirts of the historic city of
Isfahan and came on stream in 1992. It has a production capacity
of 193,000 tonnes per year for a variety of petrochemical
products, including benzene, toluene, orthoxylene and paraxylene.
Most of the output of the complex is used domestically in
military industries, paint manufacturing and as a feedstock for
the production of linear alkyl benzene (LAB) and dimethyl
O-xylene and p-xylene are also produced for export, with some 50% of the output of these products being exported. The production of this complex was recorded at 246,550 tonnes in 1375, accounting for 2.5% of the NPC’s total output and representing 127% of the plant’s nominal capacity of 193,230, tonnes. The complex has a workforce of some 770 persons, and was awarded the ISO 9002 quality management systems certificate by SGS Yarsley International Certification Services Ltd of the United Kingdom in February 1997.
Tabriz Petrochemical Complex (TPC)
This complex is located
on the outskirts of the city of Tabriz. It was established in
1990 and commenced production in 1995. It has a production
capacity of 652,000 tonnes per year and produces high-density and
linear low-density polyethylene, ethylene, propylene, 4-cut,
different types of polystyrene (high impact, general -purpose and
expansion), ethyl benzene, butene-1 and benzene. The complex’s products are used in the
manufacture of rubber and plastics products, glue, foam and
paint. Except for 4-cut and styrene, which are produced for
export, the plant’s output is used in the domestic
market. The output of the complex amounted to 52% of its nominal
capacity in 1997, and it had a staff of almost 800 persons.
The TPC is also responsible for the management and operation of the Orumieh Petrochemical Complex (OPC) located on the outskirts of Orumieh, which came on stream in 1995. The plant uses technology licenced from the China National Chemical Construction Corporation (CNCCC) and has an installed capacity for the production of 3,000 tonnes of melamine crystals and 9,000 tonnes of ammonium sulphate (produced as a by-product) per year. The total output of the plant amounted to only 6,435 tonnes in 1375, amounting to only 52% of its nominal capacity. This unacceptably low rate of capacity utilization is ascribed to the antiquated design of the plant and the poor quality of its machinery and equipment. The output is used entirely in the domestic market.
Khorasan Petrochemical Complex (KhPC)
This complex is located
in the city of Bojnourd in Khorasan province and commenced
production in 1996. Its has a nominal production capacity of
825,000 tonnes per year and produces ammonia and urea, which are
used as fertilizer and in the pharmaceutical and cosmetic
industries, in animal feed formulation and in the production of
fire extinguishing powder. The completion of this plant has
enabled Iran to meet its demand for urea fertilizer from domestic
sources and generated a surplus for export. In the Iranian year
1375 some 67,000 tonnes produced by the Razi Petrochemical
Complex thus became available for export, and it is projected
that Iran’s total exports of urea will reach
100,000 tonnes by the end of 1377 (20 March 1999) .
The output of this complex amounted to 456,713 tonnes in 1375, which corresponded to 55% of its nominal capacity and 4.5 % of the total production of the NPC in that year. This low rate of capacity utilization was due to the fact that the complex was then in its first year of operation, however, and does not imply any deficiency in the complex. The plant has a workforce of 322 and required an investment of IR1.22 billion plus $466 million.
Iran, Iraq, Syria sign major gas pipeline deal
Iran, Iraq, and Syria have signed a deal for the construction of the Middle East’s largest gas pipeline, which would transit Iranian gas from Iran’s South Pars gas field to Europe via Lebanon and the Mediterranean Sea.
Iraqi Oil Minister
Abdelkarim al-Luaybi, Syrian Oil Minister Sufian Allaw, and
Iranian caretaker Oil Minister Mohammad Aliabadi inked the
memorandum of understanding for the construction of the pipeline
on Monday in the southern Iranian port of Assalouyeh, which is
the nation’s gas hub.
According to the deal, Iranian gas will be transited to Greece and other European countries via a 6,000-kilometer pipeline crossing thorough Iraq, Syria, and Lebanon and under the Mediterranean Sea.
“The overall cost of the project is estimated to be around $10 billion,” Iranian Deputy Oil Minister Javad Ouji said after the signing ceremony, the Mehr News Agency reported.
The construction of the pipeline, stretching for several thousand kilometers, “should take three to five years, once funding is secured,” Ouji, who is also the chairman of the National Iranian Gas Company (NIGC), stated on Sunday.
According to the plan, within a month, three working groups are to be established to examine the technical, financial, and legal aspects of the project, which has been under discussion since 2008.
“Soon the feasibility studies will be given to an international consultant,” Ouji stated, but he gave no timetable.
Hopefully, the final agreement for the project can be signed before the end of the year, the Iranian deputy oil minister said on Sunday.
Iran has the second largest proven gas reserves in the world after Russia.
Iraq has said that it needs 10 to 15 million cubic meters of Iranian gas per day.
By 2020, Syria will need about 15 to 20 million cubic meters of gas per day and Lebanon will need about five to seven million cubic meters of gas per day.
According to projections, Iran’s gas output will double in the next two or three years due to the expansion of gas fields, which will make it possible for the country to export 250 million cubic meters of gas per day.
Earlier this month, Iran and Iraq discussed cooperation on the transfer of Iranian gas through Iraq and Syria to Europe during Iranian First Vice President Mohammad-Reza Rahimi’s visit to Baghdad.
The Iraqi ambassador to Iran, Mohammad Majeed al-Sheikh, said on July 5 that the gas deal would allow Baghdad to use Iran’s natural gas supplies.
It is projected that when it is completed, the pipeline will have the capacity to pump 110 million cubic meters of natural gas per day.
July 26 2011 Hamsayeh.Net
Iran, Iraq and Syria to Sign a Major Gas Pipeline Contract This Week
Iran, Syria and Iraq will finalize a major gas pipeline contract this week. The pipeline could transport over 40 billion cubic meters of Iranian gas from South Pars region to Mediterranean countries.
The contract would be the largest of its kind in the Middle East and a MOU has already been signed among officials of the three neighboring Muslim nations.
The proposed 5600 km/ 56 inches Iran-Iraq-Syria pipeline would be called the Islamic Pipeline and could potentially transport up to 40 billion cubic meters of Iran’s massive natural gas to the two countries as well as Lebanon.
Syria uses 15-20 million c/m, Lebanon 5-7 million c/m and Iraq consumes between 10-15 million c/m of natural gas per day respectively. Accordingly there’s the possibility of linking the Islamic Pipeline to the NABUCCO pipeline currently under construction.
According to experts the NABUCCO pipeline which would transfer Caspian region’s natural gas to Europe could ultimately face sever supply problems in the future if it fails to attract massive Iranian natural gas for its own long-term benefits.
July 24, 2010 gulf-daily-news.com
Iran signs $1.3 billion
Turkey pipeline deal
Iran's Oil Ministry said the country had signed a one billion euro ($1.3bn) pipeline deal to take gas to Turkey and Turkish firm Som Petrol said it was the partner in the project.
"The one-billion-euro deal to build 660km gas pipeline was signed yesterday during the Iranian oil minister's trip to Turkey," the Iranian ministry said yesterday.
A senior Iranian official said Iran would pay a transit fee to export its gas to Europe using the pipeline crossing Turkey.
"The pipeline will enable Iran to export 50 to 60 million metres of gas per day. It will be constructed within three years," Javad Oji, head of the National Iranian Gas Export Company. (NIGC), said on the ministry's website.
Oji was quoted by the Mehr news agency as saying that 23 per cent of the project would be handled by the Iranian side and 77pc by the Turkish side.
One of the world's biggest oil and gas producers, Iran has been hit by US and UN sanctions that have hindered access to foreign investment and slowed its development as a major exporter.
The website identified NIGC's Turkish partner as ASB, but Som Petrol said it had signed the deal.
"We signed the agreement on the Iran-Turkey pipeline," Som Petrol's chairman Sitki Ayan said.
"This agreement can be seen as continuation of a project that began in 2008."
Iran and Turkey first agreed on a pipeline project in 2008 with the aim of carrying Iranian gas to Europe.
Ayan said the pipeline would carry 110 million cubic metres of gas per day and is planned to be completed in 2014.
The project is estimated to cost as much as 25bn euros, he added.
Som Petrol already has operations in Turkmenistan and has been looking to expand business with Iran.
A unit of Som Petrol had applied to the energy regulator EPDK for permission to purchase electricity from Iran, according to officials from the regulator.
Turkey's Energy Minister Taner Yildiz said neither the Turkish government nor state pipeline concern Botas were involved in the deal with Iran, though several private firms had shown interest.
Yildiz added that Turkey's talks concerning Iran's giant South Pars gas project had failed to reach agreement over the marketing of the Iranian gas.
European Union foreign ministers will adopt tighter sanctions against Iran next week, including measures to block oil and gas investment and curtail its refining and natural gas capability, EU diplomats said.
04 Sep 2018
Iran inaugurates new petrochemical plants
Iran officially inaugurated Tuesday two
petrochemical projects -- the Marjan petrochemical
plant, with capacity to make 1.65 million mt/year of
methanol, and the third phase of the Pardis
petrochemical plant, with capacity to produce 1.755
million mt/year of urea and ammonia.
The plants, in Iran's southern energy zone at Assaluyeh in Bushehr province on the Persian Gulf, were launched by President Hassan Rouhani accompanied by oil minister Bijan Zanganeh.
According to local media, Pardis is the biggest urea-producing plant in the world with capacity of 5.265 million mt/year.
The first phase of the Damavand power plant was also launched with capacity of 650 MW, supplying power to the Pars Special Economic Energy Zone in Assaluyeh.
"The country's petrochemical and polymer production capacity is currently around 62.15 million mt/year. With inauguration of Pardis and Marjan petrochemical plants, this capacity will pass 65.55 million mt/year," Reza Norouzzadeh, managing director of National Petrochemical Company, told state television on Monday.
Two other methanol plants, Bushehr and Kaveh, are in final construction phase and will be launched before the current Iranian year ends on March 20, he said.
"Today, it's a day of psychological and economic war against Iran. Oil, gas and petrochemical industries are the front runners of this war because when the enemy wants to impose sanctions on us, it touches these industries," Rouhani said in a speech televised from Assaluyeh.
"Some of these projects that were launched today had started during the sanctions times and launched while the enemy is thinking new sanctions," Rouhani said referring to the US sanctions before Iran's nuclear deal became effective in January 2016.
Meanwhile, Zanganeh said that Iran's production of petrochemical feedstock ethane is expected to rise to 8 million mt this year, from 6.11 million mt in 2017 and 3.8 million mt in 2016, according to the oil ministry's news service Shana.