بهزاد محمدی

Tehran, 17 Sep. (SENA) - An Iranian official says that the government is determined to hike overall petrochemical output to 100 million tons per annum in an effort in line with “boosting production” policy and country’s development schemes.

According to Securities and Exchange News Agency report, Behzad Mohammmadi, Managing Director of National Petrochemical Company pointed out in a press conference that within next two years our collective petrochemical output should reach 100 million tons annually and the speculated revenues would hit 25 Billion Rials, leaving behind current 17 Billion Rials earnings.

He added: About 35 million tons including ethylene and propylene is used as feedstock in the domestic petrochemical complexes to produce derivatives such as plastics, detergents, solvents, paints, fertilizer, pesticides, synthetic fibers and rubbers. The rest of petrochemical output is sold in national and international markets.

Of the 31 million tons sold, 22.5 million tons are exported and 8.5 million tons is used in the downstream sector by local companies, Mohammadi concluded.

It is good to know, as at end of 2009, Iran’s total annual petrochemical production capacity stood at 34 million tones. In 2010, Iran produced 26% of the total petrochemical output in the Middle East, second behind Saudi Arabia. The petrochemical industry accounts for 2 percent of the GDP, 44 percent of the non-oil exports and 55 percent of the industrial exports. In 2011, Iran earned 12 billion dollars from exporting petrochemical products to over 60 countries. The petrochemical industry accounts for 2 percent of the GDP, 44 percent of the non-oil exports and 55 percent of the industrial exports.

The focus over the past few years has been on products which use natural gas as feedstock; in particular, methanol, ethylene, propane and butane. This is because the profit margins for crude oil and naphtha-consuming petrochemicals are continuously eroding due to the competitiveness of the market and the high price of feedstock.

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