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.

The post Report: Iran’s petrochemicals export increases by 6.5% appeared first on IRAN This Way.

Following exports of the first naphtha cargo to the United Arab Emirates by OPEC Affairs Department of the Ministry of Petroleum, a second package, with a volume of 280 thousand barrels, has been deployed to Japan.

The second shipped cargo is expected to reach destination in coming days.

Setareh Khalij Fars Refinery, as the first condensate-based refinery, enjoys a capacity of 360 thousand barrels per day and comprises distillation units, liquefied gas refining, catalytic converter, naphtha refining, isomerization, refined kerosene and gas oil.

Situated in vicinity of Bandar Abbas refinery, the complex is in final stages of construction and aims to produce gasoline, diesel, LPG and jet fuel.

The required feed for Setareh Khalij Fars Refinery will be supplied through a 485-km pipeline derived refineries of South Pars gas field.

Upon completion, the project will increase the country’s gasoline and gas oil output capacity by 36 and 14 million liters respectively.

Also, Setareh Khalij project is expected to yield four million liters of LPG, three million liters of jet fuel as well as 130 tons of sulfur per day. The refinery enjoys about 11 million barrels of capacity for storing petroleum products.

The post Iran deploys naphtha cargo to Japan appeared first on IRAN This Way.

“It is highly likely we will import again from the National Iranian Oil Company,” Pertamina spokeswoman Wianda Pusponegoro told reporters, according to Reuters.

Pertamina plans to import up to 12 cargoes, each of which contains 44,000 tonnes of gas, in 2017, she added.

Pusponegoro further said the deal could be signed this week during Indonesian President Joko Widodo’s ongoing visit to Iran.

Widodo, who is in Iranian capital at the head of a delegation, signed four cooperation agreements with Iran during a meeting with his counterpart President Hassan Rouhani on Wednesday.

Moreover, Pusponegoro said the company is also considering buying stakes in two oil and gas blocks in Iran.

“We hope they can agree on Pertamina’s proposal,” she said, noting that Iran was still studying the matter and that Pertamina aims to complete a deal at the beginning of 2017.

“Our target is for at least 30,000 barrels of oil equivalent per day.”

The post Indonesia Import LPG from Iran in 2017 appeared first on IRAN This Way.

Pertamina Managing Director Dwi Soetjipto welcomed the 44,000 metric tons of LPG transported from Asaluyeh Port in Iran by its VLGC Pertamina Gas 2 vessel, at Kalbut Port in Situbondo, East Java, Jakarta Post reported.

He added that the LPG shipment from National Iranian Oil Company (NIOC) would open up other business development opportunities between Pertamina and NIOC, in both the upstream and downstream sectors.

“It marks a new chapter of cooperation between Pertamina and the NIOC and makes trade cooperation between Indonesia and Iran more significant,” Dwi said in a statement on Thursday.

Earlier, the NIOC agreed to supply Pertamina with a total volume of 600,000 tons of LPG for 2016 and 2017.

Following the arrival of the first cargo, the NIOC will immediately send the next cargo, which is expected to arrive on Nov. 20.

In addition to the LPG purchase, the two state-run companies signed an agreement to conduct a preliminary study of two giant oilfields in Iran which have an oil reserve of more than five billion barrels.

The post Iran’s first LPG cargo arrives in Indonesia appeared first on IRAN This Way.