Iran readies for new PE start-ups in 2018, gears up for more petchem investments

After the sanctions imposed by the United States and European Union were lifted in 2016, Iran is readying to start up its new PE plants next year. Plus, the country’s new investments in the petrochemical sector has recently gained momentum.

According to ChemOrbis PE Production News , ten new PE capacities of different Iranian producers are already set to come online in 2018. Assuming that they will start up as scheduled, a cumulative PE capacity of around 2.85 million tons/year is expected to be added to the market.

Apart from the start-up of these plants, Iran appears to have geared up for further capacity expansions and new investments for methanol, olefins and polyolefins as well as infrastructural, logistical and regulatory operations for the petrochemical industry.

As was previously noted in ChemOrbis Plastics News, , Kaveh Methanol Company is planning to start up its new 2.3 million tons/year methanol unit by December while Marjan Petrochemical Company is also planning to start up its Bushehr Petrochemical Complex in March 2018.

Regarding the projects for capacity expansions, Kavian Petrochemical Co. has also launched feasibility studies to expand its ethylene capacity in its Kavian Petrochemical Complex.

Meanwhile, Jam Petrochemical Company (JPC) is also negotiating with Germany and French companies for a capacity expansion project in Bushehr, Iran. The company aims to expand the ethylene production by 20%.

Similarly, Hamedan Ibn Sina Petrochemical Company (PJSC) signed a bilateral cooperation agreement with an Italian partner on developing the Iranian company’s petrochemical complex while Petrochemical Research and Technology Company (PTRC) is also planning to establish the country’s first domestically developed methanol-to-propylene plant, for which studies are already underway.

In addition to enlarging the country’s petrochemical capacity, Iran also focuses on easing some trade barriers and improving logistics in order to organize exports better.

In the middle of November, Iran’s local media claimed that Iran and Turkey are negotiating to reduce the import duties imposed by Turkey on Iranian petrochemicals. The country also aims to establish free trade agreements with Afghanistan, Pakistan and Oman.

In terms of attempts to improve exports, Iran is also planning to set up a new shipping company to reduce shipment costs for the regular trade destinations of the country.

Parsian Oil and Gas Development Group Company (POGDC) also signed a memorandum of understanding with Qeshm Free Area Organization (QFAO) on developing a petrochemical hub in Qeshm, Iran.