Makran Region to Commence Petchem Operations by 2025

Makran Region to Commence Petchem Operations by 2025
(Sunday, December 31, 2023) 14:46

TEHRAN (NIPNA) -- The CEO of Negah-e-Makran Petrochemical Development Company has announced the expected commencement of the first petrochemical unit in the Makran region by early 1404 (mid-2025), following an approximate €8 billion investment in petrochemical projects situated in the Chabahar area.

Alireza Moniri Abiyaneh, during a visit alongside the Deputy Minister of Petroleum and CEO of the National Petrochemical Company (NPC) to the Chabahar-based projects, emphasized that after the Supreme Leader's emphasis on Makran's development in the late 2000s, the government approved the establishment of the country's third petrochemical hub in this region in 2011.

Highlighting the completion of the value chain in this area as a focus of the Ministry of Petroleum and the NPC, Abiyaneh stated that Shastaan Commercial Investment Company was tasked with the developmental role in this region, leading to the formation of Negah-e-Makran Petrochemical Development Company.

Currently, four active investors have collectively invested €8 billion in developing petrochemical units in the region, with expectations that the first petrochemical unit in Makran will begin operational activities by late 1403 or early 1404.

The expansion of petrochemicals in the Makran region presents the opportunity for Iran to access new markets for petrochemical exports, including increased demand from countries like China, India, and Pakistan.

Abiyaneh pointed out that in the initial five years of initiating the project, necessary infrastructure groundwork for the region's development had been undertaken. The required gas supply line for this hub had been organized in collaboration with the National Iranian Gas Company, reaching the complex last year.

He noted that the hub has a daily gas feed capacity of 30 million cubic meters and detailed plans for the establishment of four small-scale natural gas liquidation plants (mini-LNG) based on the Ministry of Oil and National Petrochemical Industries Company's directives.

Abiyaneh highlighted the definition of six major petrochemical units in the first phase of the Makran Petrochemical Complex, including five gas-to-anything (GTA) units and one urea and ammonia unit, derived from the products of the initial phase.

In a groundbreaking move, the Methanol-to-Olefin (MTO) project, the first of its kind in Iran, is being executed by the Bakhtar Holding.

Ensuring maximum utilization of indigenous capabilities, Abiyaneh affirmed their commitment by establishing the first technical and vocational school for petrochemicals to empower the workforce.

He outlined the participation of various commercial entities in different units within the Makran Petrochemical Complex, indicating the completion and operationalization of two Methanol units by Bakhtar Holding as the initial completed units in the complex, set to begin operations in the spring of 1404.

The projected return on investment for the Makran Petrochemical Complex, excluding utilities, is estimated to exceed 27% and is anticipated to recoup the investment in less than four years.

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