News ID: 257071
Published: 0208 GMT August 09, 2019

IIPG CEO: Petrochemical production capacity to rise 2.5m tons by next March

IIPG CEO: Petrochemical production capacity to rise 2.5m tons by next March

Iran’s petrochemical production capacity will increase by 2.5 million tons per year once the projects to develop Ilam (wester Iran), Lordegan (western Iran) and Orumiyeh (northwestern Iran) petrochemical companies are completed.

These three projects will be fully implemented by March 2020, added CEO of the Iranian Investment Petrochemical Group (IIPG) Rasoul Ashrafzadeh in an address to a press conference in the Iranian capital of Tehran on Friday, IRNA reported.

Describing the 12-month period to March 2019 as a very difficult year for his complex, he expressed satisfaction over his company’s success to increase its profit generation by 115 percent in the same time span.

He added 25 percent of the company’s profit generation growth in this period pertained to the effective management of the financial costs.

Defining and implementing plans and projects in less developed areas of Iran, such as Lordegan, is a herculean task, the IIPG managing director said.  

Commenting on the development project of Ilam Petrochemical Company, Ashrafzadeh noted that since a month ago, feedstock injection into the gas sweetening unit of the company has successfully begun.

Shifting to the pre-commissioning of the olefin production unit of Ilam Petrochemical Company, he said the project will be inaugurated in early February.

Turning to the development of Lordegan Petrochemical Company, Ashrafzadeh added the utility section of the complex has become operational.

He said the company’s ammonia and urea production units will begin production in September and November respectively and will become fully operational by March 2020.

“The project to construct a potassium sulfate production unit in Orumiyeh Petrochemical Company is 98 percent complete.”

In addition to raising the country’s total production of petrochemicals, once completed, these three projects will reduce environmental pollutants as they help decrease natural gas consumption, he said.

Ashrafzadeh stressed that among the other goals pursued by implementing these three projects are developing the areas in which they are located and creating jobs.

He blamed as a negative aspect of Iran’s petrochemical industry, paying insufficient attention to the downstream sector.

This comes as, the IIPG CEO noted, given the simple technology employed in this sector as well as its high return of capital, ability to create jobs and low construction costs, the downstream sector of the domestic petrochemical industry can be a lucrative target for private investments.

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