04 August 2011
Iran plans to set up three new petrochemical plants soon to increase its profits by producing more propylene, an oil official said.
Hamidreza Seyyed Jafari, the corporate planning director of the National Iranian Oil Refining and Distribution Company (NIORDC), said the new plants will be implemented in Imam Khomeini, Shazand and Isfahan refineries, Mehr News Agency reported.
Seyyed Jafari added that with the completion of the new plants, the refineries will produce propylene whose value-added is higher than heating oil.
The development came as managing director of the National Iranian Petrochemical Company (NIPC), Abdolhussein Bayat, said on Tuesday that Iran's petrochemical exports will reach $14 billion by March 2012.
Bayat further explained that Iranian companies produced more than 10.2 million tons of petrochemicals during March 21 to June 21, showing a two-percent growth compared to the figure for the same period last year.
He pointed out that Iran exported 4.1 million tons of petrochemical products worth $3.1 billion in the said period--a 29-percent increase over the figure for the same period last year.
The products included polyethylene, methanol, benzene, ammonia, sulphur, PVC and propylene.
Iran has expanded the range and volume of its petrochemical products significantly in the past few years, and the NIPC has become the second largest producer and exporter of petrochemicals in the Middle East after Saudi Arabia.
Gasoline Exports
Meanwhile, Deputy Oil Minister Alireza Zeighami announced on Tuesday that the country is exporting large amounts of diesel and gasoline to four regional countries, including Iraq.
"At present 1.5 million litters of diesel are exported to Iraq daily," Zeighami said, adding that Afghanistan has also sought to import two million liters of diesel which is being supplied to the country in phases.
"Armenia has also announced its readiness to import one million liters of diesel daily in addition to one million liters of gasoline (from Iran)," he stated.
Iran, the world's fifth-biggest oil exporter has long depended on imported gasoline for 30 to 40 percent of its consumption, but has now become a net exporter.
In mid-July, Iran said it would export 2.6 million liters of gasoline per day due to a rise in production and decline in consumption, Zeighami was quoted as saying by Fars News Agency.
"Given that the country's gasoline production capacity has increased to 70 million liters per day while consumption dropped to around 54 million, it is now possible to export 16 million liters," said Zeighami.
He added exports would be from current stockpiles.
In July 2010, Oil Ministry reported daily gasoline production was 45 million liters and consumption 63 million with imports making up the deficiency.
Iran increased its gasoline production after the United States and the European Union started approving their own unilateral sanctions against the Islamic Republic over its peaceful nuclear program, mostly targeting the country's energy and banking sectors, including a US boycott of gasoline supplies to Iran.
After the UN Security Council ratified a sanctions resolution against Iran on June 9, 2010, the US Senate passed a legislation to expand sanctions on foreign companies that invest in Iran's energy sector and those foreign companies that sell refined petroleum to Iran or help develop its refining capacity.
But Iran's self-sufficiency in gasoline production made Washington's plots fall flat. Iran boosted gasoline production so much that in September 2010, the country exported its first gasoline consignment to the foreign markets.
Iran plans to set up three new petrochemical plants soon to increase its profits by producing more propylene, an oil official said.
Hamidreza Seyyed Jafari, the corporate planning director of the National Iranian Oil Refining and Distribution Company (NIORDC), said the new plants will be implemented in Imam Khomeini, Shazand and Isfahan refineries, Mehr News Agency reported.
Seyyed Jafari added that with the completion of the new plants, the refineries will produce propylene whose value-added is higher than heating oil.
The development came as managing director of the National Iranian Petrochemical Company (NIPC), Abdolhussein Bayat, said on Tuesday that Iran's petrochemical exports will reach $14 billion by March 2012.
Bayat further explained that Iranian companies produced more than 10.2 million tons of petrochemicals during March 21 to June 21, showing a two-percent growth compared to the figure for the same period last year.
He pointed out that Iran exported 4.1 million tons of petrochemical products worth $3.1 billion in the said period--a 29-percent increase over the figure for the same period last year.
The products included polyethylene, methanol, benzene, ammonia, sulphur, PVC and propylene.
Iran has expanded the range and volume of its petrochemical products significantly in the past few years, and the NIPC has become the second largest producer and exporter of petrochemicals in the Middle East after Saudi Arabia.
Gasoline Exports
Meanwhile, Deputy Oil Minister Alireza Zeighami announced on Tuesday that the country is exporting large amounts of diesel and gasoline to four regional countries, including Iraq.
"At present 1.5 million litters of diesel are exported to Iraq daily," Zeighami said, adding that Afghanistan has also sought to import two million liters of diesel which is being supplied to the country in phases.
"Armenia has also announced its readiness to import one million liters of diesel daily in addition to one million liters of gasoline (from Iran)," he stated.
Iran, the world's fifth-biggest oil exporter has long depended on imported gasoline for 30 to 40 percent of its consumption, but has now become a net exporter.
In mid-July, Iran said it would export 2.6 million liters of gasoline per day due to a rise in production and decline in consumption, Zeighami was quoted as saying by Fars News Agency.
"Given that the country's gasoline production capacity has increased to 70 million liters per day while consumption dropped to around 54 million, it is now possible to export 16 million liters," said Zeighami.
He added exports would be from current stockpiles.
In July 2010, Oil Ministry reported daily gasoline production was 45 million liters and consumption 63 million with imports making up the deficiency.
Iran increased its gasoline production after the United States and the European Union started approving their own unilateral sanctions against the Islamic Republic over its peaceful nuclear program, mostly targeting the country's energy and banking sectors, including a US boycott of gasoline supplies to Iran.
After the UN Security Council ratified a sanctions resolution against Iran on June 9, 2010, the US Senate passed a legislation to expand sanctions on foreign companies that invest in Iran's energy sector and those foreign companies that sell refined petroleum to Iran or help develop its refining capacity.
But Iran's self-sufficiency in gasoline production made Washington's plots fall flat. Iran boosted gasoline production so much that in September 2010, the country exported its first gasoline consignment to the foreign markets.
© Iran Daily 2011
