implementation of Iran's nuclear deal with six world powers and the ensuing
removal of sanctions on the country, gave a new lease of life to Iran's
petrochemical industry. Many projects that had started six years ago are close
to completion. One of them is Bushehr Petrochemical Plant (BPP), which is part
of Phase II of Assaluyeh petrochemical projects. Once operational, it would add
6.6 million tonnes of chemicals and polymer products to Iran's petrochemical
in the Pars Special Economic Energy Zone (PSEEZ), BPP is being operated by
private sector for €1.9 billion plus IRR 2,500 billion. It is owned by Armed
Forces Social Security Investment Company (60%) and Maroun Petrochemical
Company (40%). BPP is being developed in three phases and includes eight
processing units plus utilities.
Mostajab ad-Daveh, CEO of BPP, told "Iran Petroleum" that
Phase 1 of BPP includes sweetening and ethane and methanol recovery, Phase 2
consists of olefin, glycol, and polyethylene units, and Phase 3 comprises
acetic acid and vinyl acetate monomer units.
to plans, utility units are expected to become operational by next March, while
sweetening and methane recovery units would come online later next year. The
CEO of BPP expresses hope that the three units of sweetening and methane and
methanol recovery would come online before June.
to our plans, BPP will run at 70% of capacity and we will soon reach
100%," he said.
of this project dates back to 2011. The primary agreements for the
establishment of these units were sealed. A year later, the agreements for the
engineering unit were executed. At present, engineering, purchase and
installation of equipment are more than 90% complete.
BPP is privately-owned, the financing of the project was to be partly handled
by equities of stakeholders.
ad-Daveh said that China had provided the entire €1.9 billion for the project
shareholders would provide 15% of the financing, and the Chinese financer would
account for 85%. But the IRR 2,500 billion would be provided by the private
of Petroleum was concentrating on the development of petrochemical industry,
while tough restrictions had been imposed on Iran. The sanctions had posed a
serious challenge to financing and purchase of equipment.
sanctions were like a double-whammy sword as they had restricted purchase of
parts from Europe and receiving license from Europe," said Mostajab
we did not wait for the Europeans' financing or license, but we decided to
remove the obstacles in one way or other. We made our purchases from China, but
we received our technical knowhow from European countries either directly or
indirectly," he said. "For example, we obtained our technical knowhow
for the methanol unit from Swiss Casale."
long as we had not found a financer we were using the equities of our
shareholders, but as of March 2015 when the Chinese finance started the
construction operations began," he said.
petrochemical units are currently able to supply most of domestic needs thanks
to the diversity of their polymer and chemical products. They are also able to
increase their exports.
of petrochemical market is not an easy job due to tough competition.
ad-Daveh said any company producing petrochemicals is a rival for BPP.
we are not worried at all about selling our products, because based on my
experience in Iran's petrochemical industry over the past 20 years we will definitely market our products," he
years of sanctions when tough conditions were governing Iran's petroleum
industry we managed to sell our products. Naturally our conditions have now
improved," he added.
is one at the gas sweetening unit to produce methanol or ethylene. Some of this
ethylene is used as feedstock for glycol units and the entire methanol produced
could be exported. Ethane is supplied to ethylene units, but other products
like propane, butane and sulfur are exported.
commodities used in the development of BPP are supplied domestically. China,
South Korea and West Europe are also among suppliers of commodities.
plans to make optimal use of all existing advantages and complete the supply
chain of petrochemical industry. For the National Petrochemical Company (NPC)
officials, the top priority in Iran's strategic petrochemical policies is to
upgrade the standing of this industry in the region and the world through
enhancing the production capacity of petrochemical products and being present
in world markets.
the turn of Iranian calendar year in March, 31 million tonnes of petrochemicals
has been supplied by Iranian plants, 10 million tonnes of which has been sold
domestically and the rest has earned Iran $6.5 billion.
The startup of BPP is
expected to help Iran win a greater share of petrochemical market and enhance
its petrochemical exports significantly.
Courtesy of Iran Petroleum