Iran Defers Methanol, Urea Projects
National Petrochemical Company (NPC) has decided to hold off a number of its methanol and urea petrochemical projects for financing given the country’s excessive output of the items, a senior NPC official said.
Director of Planning and Development of NPC Hamid Reza Rostami said the projects are being deprioritized due to the market conditions.
Iran will add more than 24 million metric tons to its methanol output in less than 5 years, which will transform the country into a methanol kingpin in global markets. However, the excessive output of the product will make construction of new plants for production of the item unnecessary.
“Based on the changes in the 6th development plan of the country, construction of some methanol and urea projects are being put off to a later time,” Rostami said.
Iran plans to bring its annual petrochemical output to 180 million metric tons through 67 major petrochemical projects which are waiting for finances for their completion.
“Iran is no longer seeking only investors in its petrochemical sector; rather it eyes to attract investors with technologies and project management skills,” he added.
Once all phases of the supergiant South Pars gas field come on-stream, Iran will see a 4.5mt rise in its ethane output which will be fed to petrochemical plants for processing, he added.
Rostami said that NPC is considering the development of the petrochemical industry along the coasts of the Persian Gulf and See of Oman from Arvand to Chabahar as its major strategy.
The petrochemical development of the regions will double Iran’s revenues from the sector by the end of the 6th five-year development plan (2016-2021), he added.
An investment of $8bn to $10bn is needed for reaching the country’s petrochemical goals, he said.