Oil Minister Highlights Petchem Industry's Vital Role at IranPlast Exhibition

Oil Minister Highlights Petchem Industry's Vital Role at IranPlast Exhibition
(Tuesday, September 19, 2023) 11:14

TEHRAN (NIPNA) -- Iran's Minister of Petroleum, Javad Owji, emphasized the vital role of the petrochemical industry and reaffirmed the administration's commitment to overcoming industry challenges during the formal opening ceremony of the 17th IranPlast International Exhibition.

Speaking at the prestigious event on Sunday, Owji underscored the unwavering support of the Ministry of Petroleum for companies and stakeholders in the petrochemical sector, stating, "We are constantly working to resolve the issues faced by these dear individuals."

Highlighting the administration's determination to collect associated gas from oil fields and utilize it for petrochemical feedstocks, Owji stated, "We will not allow the national wealth of Iran to be burnt in gas flares."

He also pointed out the remarkable progress made in Iran's oil and gas production, stating that Iran currently produces over 3.3 million barrels of oil and gas liquids per day, a significant increase from the 78 million barrels stored at the beginning of the current administration's term.

Owji further praised the IranPlast exhibition as one of the region's most prestigious international events, with over 210 foreign companies and 640 Iranian companies, as well as experts from the petrochemical and plastics industry, participating.

Despite stringent sanctions, the minister confidently stated that these measures have had minimal impact on the petrochemical sector, thanks to the presence of these individuals and the positive developments within the industry.

He highlighted the petrochemical industry's significance in terms of contributing to Iran's economy, with approximately $16 billion worth of petrochemical products exported to various countries worldwide last year. Owji also emphasized that petrochemical products make up about 50% of Iran's non-oil exports and are produced in 70 petrochemical complexes across the country.

Describing the petrochemical industry as "sanctions-proof," Owji praised the administration's planning efforts to boost production capacity and value chains within the sector throughout its term.

He highlighted the diversity of petrochemical products in Iran, ranging from polymers and chemicals to fertilizers, aromatics, and hydrocarbon products, all produced within these complexes.

Owji placed particular emphasis on polymer products, stating that Iran had issued permits for 20 million tons of polymer product production, with an installed capacity of approximately 12 million tons per year. Currently, Iran produces around 7 million tons of operational polymers annually.

Regarding the financial benefits of expanding the petrochemical value chain, Owji noted that a simple ton of polymer product exports would generate an income ranging from $900 to $1,000. However, if these polymer products are further developed into finished goods, the income from exports could increase to approximately $5,000 to $6,000 per ton.

Owji commended the investments made in polymer production, which serve as a fundamental feedstock for the plastics industry. He pointed out that propylene and ethylene, derived from gas refineries, are transformed into polypropylene.

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