Iran is Set to Double the Production of Petrochemical Products By 2021Nov 21st, 2017
The Managing Director of the Petrochemical Commercial Company Mehdi Sharifi-Niknafs announces that Iran will double petrochemical production. By 2021 the annual capacity of the domestic petrochemical companies will amount to 120 Mt.
At the meeting of the Committee on Trade Facilitation and Export Development held by Tehran Chamber of Commerce, Sharifi Niknafs reported that the current capacity of Iranian petrochemical facilities is 60 million tons. Thus, the increase in capacities twice is a pretty ambitious plan for manufacturers.
However, the Iranian refiners claim that this prospect is rather feasible. They predict that by 2019 Iran will be able to yield around 22% of ethylene of the total ethylene production across the globe. Iran will grow into a major ethylene producer in the Middle East owing to the fact that the national companies have incredibly large quantities of raw materials which consequently enable them to produce a comprehensive range of petrochemical products at competitive prices.
Besides possessing vast raw stocks, the national petrochemical sector is widely supported by the Foreign Direct Investment Programme (FDI).The management team of Persian Gulf Petrochemical Industries Company (PGPIC), another Iranian key producer, has estimated that today direct investments for financing domestic petrochemical projects are the main drivers of the petrochemical sector advancement.
New projects contemplate the launch of several petrochemical plants within the next 8 years. For the Iranian petrochemical producers, it means considerable revenues amounted to $ 55 billion.