Shazand Propylene Unit to End Imports
Iran sits atop one of the largest natural gas and ethane reserves in the world. Since other countries in the Middle East lack abundant ethane deposits, the huge reserves in Iran serve the country as a big opportunity and a bargaining chip in its petrochemical industry. Natural gas and ethane are the base for many chemical products, the most important of which is polypropylene.
Ethylene and propylene are among the main basic petrochemical products. Their value-added is higher than that of raw materials like gas and naphtha.
Last year Iran produced more than 1 million tons of propylene, but this trend seems to be changing.
In fact, one of major reasons for the low production capacity of downstream industries during years of international sanctions must be sought in this sector.
Over the coming ten years, Iran’s National Petrochemical Company (NPC) plans to have propylene-based activities. Propylene production is set to increase in coming years.
40 Tons Propylene in Pre-Commissioning Stage
Establishment of a propylene production unit at Shazand Petrochemical Plant is a step in this direction. That is why Marzieh Shahdaei, CEO of NPC, visited Shazand Petchem Plant during the final days of summer and inaugurated the propylene production unit there.
The propylene production unit is an important infrastructure project in Iran in line with the general policies of the Resilient Economy instructed by Supreme Leader Ayatollah Ali Khamenei. This semi-industrial unit will be operating with a capacity of 2,400 tons a year and will be able to supply propylene at different grades.
On the sidelines of the inauguration ceremony, Shahdaei said that Petrochemical Research and Technology Company (PRTC) was tasked with providing required technologies for petrochemical sector.
“This company has in recent years been markedly active in the field of processes and production of catalysts and the inauguration of this propylene unit is one of these results,” she said.
“In the near future, with the petrochemical projects set to become operational, propylene production will increase and new downstream units will be developed,” said Shahdaei.
Construction of a semi-industrial propylene production unit started in October 2012 and it has produced 40 tons of propylene in the pre-commissioning phase since April this year. Furthermore, manufacturing of key equipment for semi-industrial propylene production has been done by domestic manufacturers. Its objective is to acquire technical knowhow for catalysts and develop new grades, develop process and catalyst, develop products and resolve problems of related industrial units.
The objectives and plans envisaged for the semi-industrial propylene production unit include research projects to indigenize technical knowhow, develop products and optimize processes, indigenize special equipment, boost output and profitability, renovate technology and help train researchers.
The nominal capacity of propylene production in the country was about 965,000 tons up to 2013. Under the 6th Economic Development Plan (2015-2020), the country’s propylene production capacity is expected to increase to about 4 million tons. According to plans, the country’s propylene production capacity would reach 8 million tons by the end of the 7th Economic Development Plan.
KhomeynPetchem Plant Waiting for Propylene
One of development plans for Shazand is to envisage new destination for its products. Khomeyn Petrochemical Plant is one of these destinations.
“The Shazand refinery supplies feedstock to Arak Petchem Plant and due to its location in the center of the country it is strategically very significant,” said Shahdaei. “Khomeyn petrochemical project, which has been designed based on the products of this unit, is in the stage of purchase of equipment and it would produce propylene.”
Catalyst Supply Restrictions Lifted
KhodadadGharibpour, CEO of Shazand Petrochemical Company, presented a report about the activities of the company. He said that the company’s production and sale of petrochemicals reached 1 million tons last calendar year to March 2016. He said that the company set a new record in production and sale last year.
Gharibpour added that the ShazandCompany has fully collected its money from petrochemical exports without being affected by banking restrictions.
He said it was among the first Iranian companies that have managed to get back frozen money from Japanese and German companies following the implementation of Iran’s nuclear agreement with world powers. He said Iran received $1 million from Japan and €4.6 million from Germany.
Gharibpour said the feedstock needed by the ShazandCompany was supplied by Isfahan refinery at 1,800 tons, which has now been cut to 450 tons.
“Shazand Petrochemical Plant has received feedstock from 16 national and foreign resources. We have so far managed to identify 9 types of feedstock with different composition at Imam Khomeini refinery,” he said.
“With planned measures we have managed to strike this industry off the list of polluting industries,” said Gharibpour.
He also said that health, safety and environment (HSE) requirements are fully met at Shazand Petrochemical Company.
“We have gone ahead with safety instructions and this important issue has been proven as no incident has happened,” he said.
Noting that the company is equipped with the best systems for water treatment in Iran and the Middle East, Gharibpour said: “With the objective of optimal recovery from underground waters, a wastewater treatment project is set to be implemented with an investment of €7 million to €8 million.”
“As far as financing of the wastewater treatment project is concerned, the tender documents have been issued and we are looking for a contractor,” he said.
Shazand Refinery in Talks with Europeans
Ali Jamshidi, CEO of Imam Khomeini Oil Refining Company, was also present at the inauguration ceremony.
Asked by “Iran Petroleum” about the conditions of this refinery for producing euro-5 and euro-6 gasoline, he said the preparations have been made for that purpose.
Referring to the tough conditions of years of sanctions, he said: “At that period of time, the activity of some units used to be halted due to the lack of parts and equipment and Phase 2 became operational under the tough conditions of sanctions. We have now reached self-sufficiency for the production of many catalysts used in the gasoline production unit and we can say that we will stop importing catalysts within two years.”
He also said that talks had been held with leading companies from the Netherlands, Germany and France for their future contribution to this refinery and implementation of development projects.