In this period, the export of petrochemicals and gas condensates registered a 38.8 percent hike as compared to the same period of last year.

Another statistic indicated that Iran’s export of handwoven carpets and handicrafts registered a 4.7 percent growth from March 21 to July 23.

Over 35.7 million tons of products, valued at $17.3 billion, were exported from the country, showing a 6.4 percent decline and also a 22 percent hike in weight and value respectively.

Accordingly, the imports of non-oil goods into the country showed a 12.2 percent decline and a 16.8 percent hike in weight and value respectively, the report added.

Based on the report of the ministry country’s foreign trade value in the first four months of the current year hit about $28.9 billion, the rate of which stood at about $36.5 billion in the last year’s corresponding period.

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Fereidoun Hemmati who recently had visited the implementing process of oil and refinery projects in the coasts of Mokran told local media on Friday that mega projects in the oil transmission line, the oil export terminal, and the port and offshore oil export are underway in Jask County.

“Mokran coastline can play a special role in the future of marine exchanges,” Hemmati added.

He went on to say that each of these mega projects that are underway by Iranian specialists and engineers, and by the completion of oil transmission line, crude oil will be transferred from Goreh to Jask via a transmission line.

Construction of Goreh-Jask pipeline project and Jask export terminal officially commenced on Jun 25, 2020.

Governor-General of Hormozgan province added that an oil export terminal project is also being done in the Mokran coasts with a capacity of 10 million barrels.

Mokran coastal region is located in Balouchestan province in southeastern Iran and southwestern Pakistan, it is a 600-mi (1,000-km) stretch along the Gulf of Oman from Ra’s (cape) al-Kūh, Iran (west of Jask), to Lasbela District, Pakistan (near Karachi).

Mokran is a semi-desert coastal strip in the South of Sistan and Baluchestan, in Pakistan and Iran, along the Persian Gulf and the Sea of Oman.

According to official statistics, about 40,000 jobs have been created directly and two to 3,000 indirectly.

Iran’s Mokran coastal area are the perfect places for the development of the petrochemical industry and, given the wide availability of gas resources, are highly valuable for this region’s development.

The strategic position of Mokran coasts, along the Sea of Oman, the new port will be established to increase Iran’s marine traffic in international waters and the oceans.

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“In the year of “Surge in Production”, the petrochemical industry is trying to benefit from the most of the domestic capabilities and with new petrochemical projects being inaugurated, the production capacity in this industry will increase significantly,” IRNA quoted Ali-Mohammad Bosaqzadeh as saying.

He said the petrochemical industry is now the center and pillar of the country’s economic development and is in close collaboration with all industrial sectors, adding that injecting resources into the productive sectors and prohibiting the waste of national resources can lead to the second and third leaps in the petrochemical industry.

Noting that the balanced development of the petrochemical industry is of particular interest among NPC strategies for the current year, he said: “In this regard, the development of downstream petrochemical industries is going to prevent the sale of raw materials and will result in the production of products with higher added value.”

He further noted that most of the underway projects in this industry are currently using domestic equipment, licenses and technological knowledge of Iranian experts.

Considering the undeniable significance of the petrochemical industry in Iran’s resilient economy in the sanctions era, the Iranian Oil Ministry and the country’s National Petrochemical Company have been taking major steps to facilitate further development of this industry in recent years.

Back in September 2019, Bosaqzadeh noted that Iran‘s annual petrochemical output, which is currently at nearly 70 million tons, is planned to reach more than 100 million tons by the Iranian calendar year of 1400 (ends on March 2022) and to 130 million tons or nearly doubled) by 1404 (ends on March 2026).

Also in August 2019, Oil Minister Bijan Namdar Zanganeh had announced that the country’s annual petrochemical output is expected to reach more than 100 million tons by 2021, despite U.S. sanctions.

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He said on Tuesday that export-oriented perspectives should be taken into consideration for promoting exports while boosting the quality of products is a prerequisite for spurring exports in the country, reported Mehr News Agency.

Iran’s 15 neighboring countries are home to about 500 million people, he said, adding, “These countries provide between $200 and $250 billion worth of export capacity for Iran.”

If barriers of trade and business activities were removed, Iran would be able to export $50 million worth of products to these countries, Al-e Es’haq noted.

He put the volume of products exported from Iran to neighboring Iraq over the past year at $13 billion, while about $9 billion worth of products were exported to Iraq in the first nine months of the current year (March 21 to Dec. 22, 2019).

Iran enjoys a high potential to export up to $20 billion, $6 billion and $5 billion worth of products to Iraq, Afghanistan, and Pakistan, respectively, he stressed.

The head of the Islamic Republic of Iran’s Customs Administration (IRICA) said in January that despite the United States’ unilateral sanctions against the Iranian economy, the value of Iran’s foreign trade exceeded $72 billion during the first 10 months of the current Iranian calendar year (March 21, 2019-January 20, 2020).

In an address to reporters on Sunday, Mehdi Mir-Ashrafi added that of this figure, $35.5 billion pertained to Iran’s exports and $36 billion to the country’s imports.

He noted that the value of Iran’s overseas sales in this period indicated a three-percent decline compared to the same period last year, saying the figure does not include the country’s exports of electricity and techno-engineering services.

The weight of the country’s exports in this time span, however, indicated a 20-percent growth year-on-year, IRICA head added.

In addition, Mir-Ashrafi said, Iran’s imports in the 10-month period to January 20 witnessed an eight-percent rise weight-wise, compared to the country’s purchases in the same time period last year, adding they did not indicate any year-on-year change in terms of value.

He said of Iran’s total imports in this period, 19 million tons pertained to the purchase of basic goods.

“In addition, fetching $15.8 billion in revenue, the export of petrochemicals from Iran accounted for 44 percent of the country’s total exports in this period.”

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Iran Petrochemical Industry Output to Hit $25bln by 2021

“Iran’s petrochemical production capacity would cross 100 mt/y by 2021,” Minister Zangeneh said, addressing the opening ceremony of the 13th Iran Plast International Exhibition on 23 September 2019.
He noted that the petrochemical production capacity of the country would reach 130 mt/y by 2025 valued at $37 billion.
“Iran’s ethane production capacity would reach 16 million tons per year by 2021 from 4.2 mt/y back in 2013. The items’ current production capacity is 7.3 mt/y,” Zangeneh added.
The Iranian oil minister noted that 27 projects would come on stream in the country by 2021.
In relevant remarks on Sunday, Head of the National Petrochemical Company of Iran Behzad Mohammadi announced that his country will inaugurate 27 new petrochemical complexes by early 2022.
Mohammadi said that Iran would increase the number of its petrochemical complexes to 83, from the current 56, by early 2022, adding that both production and the feed used for those complexes would significantly diversify in the coming years.
He added that the Iran had extensive plans for expansion of refining and petrochemical activity, adding that government and private investment in the sector would top 70 billion in the next two years.
Mohammadi noted that the size of investment in downstream sections of the oil and gas industry, where petrochemicals are produced and marketed, would reach $93 billion by 2025
He said the proportion of gas to liquefied feed burnt in the refineries would change from the current 77-23 to 86-14 by 2025, mainly thanks to plans for collecting flared gas at oil and gas facilities.
The official said Iran had invested around half a billion dollars in research and development for manufacturing catalysts used in the refining process, adding that 16 groups of high-tech devices needed in the industry were currently produced inside Iran and a group of nine others were expected to be covered by the domestic production by 2022.
Mohammadi estimated that jobs created in Iran’s petrochemical sector, including those on the supply chain, was around one million, adding that around 880,000 people were currently working in 15,000 enterprises active in the industry’s downstream section.
Mohammadi had said that the petrochemical industry of Iran has focused on domestic manufacturers and contractors in implementing its projects.
“The National Petrochemical Company (NPC) is seeking to ensure the maximized involvement of domestic manufacturers and contractors in petrochemical projects,” he said.
He noted that the petrochemical industry has currently received about 33 million tons of feedstock, equivalent to 650,000 barrels of oil per day, which was supplied from oil and gas refineries and NGL units.
“About 56 petrochemical plants of the country yielded 31 million tons of finished products annually, of which 22.5 million tons were exported and 8.5 million tons were consumed domestically,” Mohammadi said.
The total value of petrochemical products from domestic sales and exports has hit $17 billion annually.

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Construction of the refinery started in 2006, but the project was delayed as the result of some  financial limitation due to the sanctions against Iran.

Planned to have a total crude oil processing capacity of 360,000 barrels per day, Persian Gulf Star is projected to be complete by the end of the next Iranian calendar year 1397 (March 20, 2019).

The facility is owned by Oil, Gas and Petrochemical Investment Company (49%), Oil Industry Pension Fund (33.1%) and National Iranian Oil Refining and Distribution Company (NIORDC) (17.9%).

The project is estimated to be completed at a cost of approximately $3.4bn.

Once fully operational, the refinery will add over 36 million liters of Euro-4 and Euro-5 quality gasoline to the country’s gasoline production capacity to increase it to 100 million liters per day.

When the first phase of Persian Gulf Star Refinery was inaugurated by President Hassan Rouhani on April 30, 2017, Iran said it is now self-sufficient in gasoline production.

“By inaugurating the first phase of this refinery an old dream came true. We are self-sufficient in gasoline production and in near future we will be able to export,” Rouhani said in the inaugural ceremony of the first phase.

Second phase of the refinery is scheduled to be complete by the end of the current Iranian calendar year (March 20, 2018) adding 12 million liters of Euro 5 gasoline to Iran’s capacity of the product, Alireza Sadeq-Abadi, the managing director of National Iranian Oil Refining and Distribution Company (NIORDC), announced in the inaugural ceremony of the distillation unit of the second phase on February 14.

In mid-December last year, Oil Minister Bijan Namdar Zanganeh said Iran will reach a stable status in gasoline production once the second phase of Persian Gulf Star Refinery comes on stream.

Bringing self-sufficiency for the country in terms of gasoline production, once fully operational, the Middle East’s largest processing facility for gas condensate will also play a big role to turn Iran into an exporter of gasoline.

The big job has already started as the first shipment of Euro 5 gasoline produced by Persian Gulf Star Refinery was delivered to Shahid Rajaee port in south of the country in early December last year.

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According to the Customs statistics, petrochemicals export with exclusion of gas condensates had 8 percent decrease with amount of around 15 billion dollars, Kamali Ardakani said.

Volume of minerals and mining industry products export reached 7.5 billion dollars, showing 14 percent growth, he added.

Deputy Minister of Industry, Mine and Trade for export affairs Mojtaba Khosrotaj said in the meeting that given to created capacities, it is predictable that this year Iran has around 1.5 billion dollars increase in mine sector and 6.5 billion dollars increase in petrochemicals export.

Jump in Petchem Output, Exports

The removal of international sanctions on Iran in the aftermath of the implementation of Iran’s 2015 nuclear deal with six world powers, dubbed the Joint Comprehensive Plan of Action (JCPOA), once more tempted international companies and foreign investors to step into Iran which sits atop huge oil, gas and petrochemical deposits.

The JCPOA allows Iran to forge a new alliance with the West, which would benefit both sides. Such alliance would further interact through trade, investment and negotiations for the development of oil, gas and petrochemical projects. Now that the way has been cleared for investors and proprietors of technology to step into Iran, everybody is preoccupied with development in the shadow of the existing calm atmosphere.

Iran’s National Petrochemical Company (NPC), a subsidiary of Iran’s Ministry of Petroleum, has already embarked on activities to that end. Iran is currently producing at least 60 million tons a day of petrochemicals. In the meantime, more than 60 petrochemical projects left from the third, fourth and fifth national development plans are under operation.

Once the foregoing projects come online, Iran will see its petrochemical output double. A review of petrochemical production in Iran over past two decades indicates two periods of hike in production in 2006 and 2010.

According to the official data, Iran’s petrochemical production stood at around 10.8 million tons in 1997, which jumped to 18.3 million tons in 2006 and 42.6 million tons in 2010. According to projections, the output is expected to reach 53.4 million tons in the coming years.

The NPC data shows that petrochemical production in Mahshahr, Assaluyeh and other areas of Iran stood at 19.5 and 22.9, respectively and 11 million tons during the calendar year 1396 which ended on March 20.

A total of 53.4 million tons of petrochemicals were supplied by 51 petrochemical plants operating in Iran. That represents only 84% of Iran’s rated petrochemical production capacity.

Acting manager of production control at NPC Qodratollah Farajpour said feedstock shortages, technical and processing malfunction were to blame for the non-supply of 13 million tons of additional petrochemicals. He said that feedstock shortages were responsible for 6 million tons and technical malfunctions for 7.4 million tons. Farajpour said such restrictions needed to be minimized so that existing production capacities would be used. Furthermore, Iran’s petrochemical storage capacity currently stands at three million tons.

The value of products depends on a variety of factors including supply, demand, oil price and mix of products. If the average price for each tone of petrochemicals is assumed at $543, Iran’s petrochemical exports were on the decline from 2011 to 2017 due to oil price crash. In 2011, Iran exported 17 million tons of petrochemicals for $14 million, while in 2017, Iran’s petrochemical exports reached 21 million tons for only $11 million.

In terms of weight, the products included mainly methanol, liquefied petroleum gas (LPG) and urea fertilizer, which were priced respectively at $370, $380 and $210 per ton. Nonetheless, manufacturing more valuable products including polymers (polyethylene at $1,400 per ton) and Karoun Petrochemical Plant’s products (MDI at $2,800 per ton) could boost the value of petrochemical sales.

The 2011- 2017 period experienced a sharp decline in petrochemical exports in 2013 due to tough international sanctions imposed on Iran. The country saw its petrochemical exports sharply fall from 17.8 million tons in 2011 to 12.8 million tons in 2013. Thanks to the , Iran’s annual petrochemical exports have reached 21.5 million tons.

In Farajpour’s view, the growth perspective and the improvement in the rated production capacity of existing units indicate that due to the increased ethane production in the South Pars phases in coming years, the olefin units of Assaluyeh would move to enhance their ethylene production capacity through filling up their vacant capacities.

Fanavaran Petrochemical Plant hopes to reach its rated methanol production capacity by improving its installations, while Amir Kabir Petrochemical Plant plans to boost its rated olefin production capacity. Takht-e Jamshid Petrochemical Plant eyes building its second PBR production unit while Bandar Imam Petrochemical Plant is investing in a new olefin unit. The methanol unit of Kaveh Petrochemical Plant, with a rated capacity of 2.3 million tons a year, is close to becoming operational. It will start production this year or next year.

Furthermore, the methanol unit of Marjan Petrochemical Plant, with a rated production capacity of 1.65 million tons a year, is to come on-stream in coming months.

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Director of Production Control in Iran’s National Petrochemical Company (NPC) Alimohammad Bosaghzadeh pointed to five-month statistics for production and the four-month statistics for export of petrochemical products since the beginning of present Iranian year saying, “in the first five months, amount of production grew by six percent as compared to the similar period last year even though output figures normally drop in the first half of the year due to complete overhaul in complexes,” MNA reported.

The official, while voicing satisfaction towards the trend in production, estimated that the overall output level will grow by five million tons as compared to a year earlier.

He also underlined that efforts were being made to boost nominal capacity utilization to as high as 86 percent given that the figure for last year stood at 81 percent.

“Export volumes of petrochemical products have also risen in the ongoing year as the figures catapulted by 12 percent in volume and four percent in value.

Bosaghzadeh expressed hope that more feedstock will be supplied to petrochemical complexes in the second half of the year in a bid to realize a more sustainable production.

“In addition to development of the upstream sector, NPC has also put on agenda expansion of downstream projects with the aim of completing the production chain, which is turn, brings about a reduction in raw sales and an upsurge in sustainable employment opportunities,” he underlined.

The NPC official noted that a number of new petrochemical projects will come on stream later this year to further boost output capacity; “partnership of local banks and attraction of foreign investors can enhance the process.”

The production capacity for Iran’s petrochemical products is expected to reach 72 million tons worth 17 million dollars by the end of the present Iranian calendar year.

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“On a trip to Germany, we had discussions about Siemens’ participation in Iran’s railway and power plant projects,” Deputy Minister of Road and Urban Development for International Affairs Asghar Fakhriyeh-Kashan said on Tuesday.

In the rail sector, Iran is going to buy a number of wagons from Siemens for use on a high-speed line between Tehran, Qom and Isfahan, he said. Siemens will also cooperate on providing signaling equipment and installing communication signs.

“Through financing a number of construction projects, Siemens plans to enter into a joint venture with Iran’s MAPNA company both in the power plant and locomotive manufacturing sector in order to boost domestic production,” he said.

Last month, the Export-Import Bank of China (EXIM) signed a $1.5 billion deal to finance the electrification of a high-speed rail line between the Iranian cities of Tehran and Mashhad.

EXIM’s Vice President Sun Ping said in Tehran that the institution had provided loans for 26 Iranian projects in the electricity, petrochemicals, non-ferrous metals, oil and gas sectors, worth $9 billion.

China Railway Group Limited (CREC) is carrying out the $1.8 billion electrification of the high-speed rail link between Tehran, Qom and Isfahan.

Iran has announced plans to splurge up to $25 billion over the next 10 years on the modernization and expansion of its railway network.

Siemens was one of the first major companies to agree on a deal with Iran after the lifting of sanctions in January 2016, signing a $1.6 billion memorandum of understanding on Iran’s rail infrastructure and a long-term roadmap with MAPNA on the power sector.

The agreement included a license for manufacturing F-class gas turbines in Iran, under which more than 20 gas turbines and associated generators will be delivered over the next four to five years.

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The first major Western energy investment since sanctions against Tehran were lifted will cost up to $5 billion, with production expected to start within 40 months, an Oil Ministry source said, Reuters reported.

The US and other world powers lifted sanctions after the country pledged to roll back its nuclear program.

With the 20-year deal, Total is now returning to Iran, where it first began operating in the 1990s. Total CEO Patrick Pouyanné said in a statement on Monday that the investment would be “in strict compliance with applicable national and international laws”.

The US still has restrictions in place that block most American companies from investing in Iran. And some Western companies have been reluctant to jump in since Iran still faces sanctions that prevent firms from transacting with Iran in US dollars.

Total estimates the first phase of the project will cost around $2 billion. It is taking a 50.1 percent stake in the South Pars project. CNPC will own 30 percent while the other 19.9 percent will go to Petropars.

The project will have a production capacity of two billion cubic feet per day, or 400,000 barrels of oil equivalent per day including condensate, according to Total.

Iran’s Oil Ministry predicts the project will eventually produce gas products worth $54 billion based on current prices. The gas will start flowing into the Iranian market in 2021.

Iran has significantly ramped up its energy production since the sanctions were relaxed.

Figures from OPEC show Iran has boosted its daily crude oil production by more than 33 percent since 2015.

Iran sits on nine percent of the world’s proven oil reserves and 18 percent of the planet’s natural gas, according to data from BP’s Statistical Review of World Energy.

Iran and Qatar share the South Pars field.

Iran has signed a flurry of deals with Western companies over the past year since the easing of international sanctions on Tehran after an accord was reached over its nuclear program.

Iran needs foreign investment to repair and upgrade its oil and gas fields. It also seeks the transfer of technology to its oil industry after a decade of sanctions.

Iran has named 34 companies from over a dozen countries as being eligible to bid for oil and gas projects using the new, less restrictive contract model.

The firms include Shell, France’s Total, Italy’s Eni, Malaysia’s Petronas and Russia’s Gazprom and Lukoil, as well as companies from China, Austria, Japan and other countries.

Russia’s Zarubezhneft signed an MoU to conduct feasibility studies on two joint fields in the west of the country.

Norway‘s International Aker Solutions Company signed an MoU to modernize Iran’s oil industry.

In May 2016, Austria’s OMV signed an MoU for projects in the Zagros area in western Iran and the Fars field in the south.

South Korean Daewoo Engineering and Construction (Daewoo E&C) signed an MoU to construct an oil refinery in Bandar Jask, on the southern coast of Iran.

Italy’s Saipem signed MoUs to cooperate on pipeline projects, upgrading of refineries and development of Tous gas field in the northeastern province of Khorasan Razavi.

Norwegian oil and gas company DNO said it was the second Western energy company after Total to sign a deal with Iran under which it agreed to study the development of the Changuleh oilfield in western Iran.

Lukoil, Russia’s second biggest oil producer, hopes to reach a decision on developing two new oilfields in Iran.

Germany’s Siemens AG signed an MoU in May to overhaul equipment and facilities at Iran’s oil operations and refineries.

BASF’s Wintershall oil and gas exploration subsidiary signed an MoU with the National Iranian Oil Company in April 2016.

President Rouhani:
Developing South Pars Phase 11 not only an economic contract, but also a scientific, technological, management cooperation

President Rouhani met with the Chairman and CEO of France’s Total company and described South Pars region as an important centre for developing international cooperation with Iran in the field of energy-technology.

In the meeting that was held on Monday in Tehran, Dr Rouhani told Total’s Patrick Pouyanné: “Due to the good potentials and hard-working young men in Iran, the contract of developing Phase 11 of South Pars is not only an economic one, but also a scientific, technological and management cooperation”.

Total CEO: We seek a long-term cooperation with Iran

“The Islamic Republic of Iran and France have always had good relations and cooperation with each other,” he continued saying.

Referring to France’s position in economy and energy technology, he added: “The signing and execution of this contract will be a significant step in development of economic and technological cooperation between the two countries”.

Stating that the 11th administration has attempted to finalise the Joint Comprehensive Plan of Action (JCPOA) to clear the path for economic cooperation between major companies and Iran, the President said: “Fortunately, this political will from the Iranian side and among P5+1 countries paved the way for this agreements with Total”.

President also referred to his Europe and France visit after the signing of JCPOA, adding: “In Paris, there was a good political will among the authorities of both countries to develop cooperation and important agreements were signed between the two countries to deepen ties and cooperation”.

“It is our policy to cooperate with major companies such as Total,” said Dr Rouhani, adding: “Currently, projects in gas and oil worth roughly $200bn are ready to be invested on and major foreign companies can cooperate in these projects”.

“We must work hard to achieve peace and stability in the region serving economic progress and development of the region, because scientific and developmental cooperation can help us combat ignorance and poverty as the bedrocks of terrorism expansion,” he continued.

The President also expressed hope that with the new agreements and cooperation in the field of gas, oil and petrochemicals, Iran and France take considerable steps in developing ties.

During the meeting, the Chairman and CEO of France’s Total company Patrick Pouyanné also expressed happiness over meeting the President of the Islamic Republic of Iran and described the contract as a very important one, saying: “Today, we are very happy that we could finalise and execute the contract with the help of the authorities of the two countries”.

Stating that the JCPOA agreement has paved the way for further development of relations between European countries and Iran, he said: “We are optimistic about our cooperation with Iranian companies”.

“We seek a long-term cooperation with Iran,” continued Pouyanné.

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