PremiumIran petchem plants have idle capacity since 2005

Baku, Azerbaijan, Feb. 15

By Dalga Khatinoglu – Trend:

Iran has doubled gas output capacity since 2005 to about 284 billion cubic meters in 2016, of which 97 percent is methane and the remainder is ethane, propane, butane, etc.

Gas condensate output also increased at the same pace to above 560,000 barrels per day in 2016.

All of the mentioned raw materials are feedstock for petrochemical plants, but according to an official statistics prepared by Oil Ministry and seen by Trend, there has been a significant amount of idle capacity since 2005 and feedstock shortage shares 44 percent of the total idle capacity.

During last years, Iran increased feedstock supply to petrochemical plants, but the rapid growth of nominal production capacity as well as export decline due to sanctions led to continuance of idle capacity.

There was a slight growth in feedstock supply, while the nominal capacity of petrochemical plants increased by 20 percent during the mentioned period.

Iran’s feedstock supply to petrochemical plants:

Iran plans to double petrochemical output capacity by 2020 and increase its share in global petrochemical production to near 5 percent.

Over the 10 months of current fiscal year, which started on March 21, Iran increased petrochemical export by 35 percent, but the value remained unchanged due to low oil price.

However, after a year from elimination of sanctions against Iran, with increasing oil price and gas output it seems the country will increase petrochemical exports and revenues in 2017.

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Dalga Khatinoglu is the head of Trend Agency’s Iran news service, follow him on Twitter: @dalgakhatinoglu