1 March 2021 - 12:08
  • News Code: 314126
Rouhani Orders Construction of Key Petchem Project

TEHRAN (Shana) – Iranian President Hassan Rouhani has officially broken grounds for construction of a strategic petrochemical project on Monday morning via videoconference.

The CEO of Parsian Oil and Gas Development Group called Kian Petrochemical project one of the most strategic petrochemical plants in the country in line with the sustainable development of the petrochemical industry and creation of highly value-added projects, and said construction of the first phase of the facility officially began on Monday, February, 29.

Vahid Mahmoudi stated Kian Petrochemical project includes a set of olefin and downstream units that have a high added value in the petrochemical industry compared to existing chains.

He added: "Kian Petrochemical Plant is designed in two phases, the first phase will be heavy olefin and polyethylene units and the second phase will be propylene oxide, ethyl benzene and styrene monomer units and oxo alcohol units; the total investment of phases one and two is about 3.5 billion euros."

The CEO of Parsian Oil and Gas Development Group pointed to the implementation of this project in the second phase of Assaluyeh Petrochemical Special Zone, and said 60% of this company belongs to Parsian Oil and Gas Development Holding and 40% belongs to Petrofarhang Holding.

27% return on investment

Mahmoudi stated that the contractor of the Olefin unit is Oil Industries Engineering and Construction (OIEC) which has developed it under an EPCC contract, adding that the amount of this contract is 1 billion and 360 million euros and the license of this unit is from the Germany’s Linde.

The CEO of Parsian Oil and Gas Development Group Company, pointing out that 450,000 tons of ethylene and 450,000 tons of heavy polyethylene will be produced in the heavy polyethylene unit, continued: Nargan Company is the contractor of this unit under an EPCC contract with an investment of about 8. 5 million euros.

Mahmoudi stated that the rate of return on capital of Kian Petrochemical Plant is 27%, and said: "This project is one of the most attractive projects in terms of rate on return and in terms of unit size and having a collection from olefins to heavy and low polyethylene products, it is one of the largest projects ever built [in the country]."

Emphasizing that the priority of his holding is to use domestic forces, Mahmoudi said: "In the implementation of Kian Petrochemical project, maximum efforts will be made to use domestic production, and this project, as one of the largest petrochemical projects in the country, will create employment for about 3,000 people during construction and operation phases."

News Code 314126


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