Iran Boosts Gas Feedstock for Petchems

Iran’s petrochemical units have upped their demand for methane and ethane, as the country’s production and export of petrochemical products have surged. However, low oil prices have cut export revenues.

The number of petrochemical complexes to become operational  has risen from 43 in March 2013 to 50 today, while installed capacity has gone up from 60mn mt/yr to 65,4mn mt/yr, an Iranian official told NGW.

Petrochemical output rose from 41.3mn mt in 2013 to 47.9mn mt last fiscal year (ended on March 20) and the figure is expected to rise to 56.7mn mt this fiscal year (FY).

Feedstock, especially ethane, for petrochemical units, in the current FY, is expected to double, he said. South Pars production growth helps explain a 40% rise in ethane while processed gas deliveries have risen 16.5%, mostly to fuel the plants.

Iran's Jam petrochemicals plant (Credit: govt)

Petrochemicals exports rose from 12.8mn mt in the year ended in March 2014 to 18.8mn mt in the last fiscal year and are expected to hit 10.3mn mt in the first half of this FY (September 21), he said.

With low oil prices, petrochemicals prices have also fallen off. Statistics show that petrochemical exports yielded $9.9bn in the year to March 2014 but $9.6bn in the last FY. The source said that the figure was expected to exceed $4.5bn in the first half of the current FY. Iran has 50 petrochemical plans that could be developed at a cost of $32.7bn, he added. Iran plans to double petchem products by 2021 and triple by 2026 to 180mn mt/yr.