Two knowledge-based catalyst production projects – polypropylene and high-density polyethylene catalysts – have become operational using homegrown knowhow. The projects came online in a remotely participated-in ceremony by President Hassan Rouhani. These production units have been built by researchers at the Shazand branch of Petrochemical Research and Technology Company (PRTC) in Markazi Province. The equipment is totally domestically-manufactured. Iran’s petrochemical industry would no longer have to import these categories of catalysts. The $7 million PP catalyst production unit has an annual capacity of 12 tonnes a year, meeting 30% of the petrochemical industry’s needs. The HDPE catalyst has been launched with the CX technology and an investment of $3 million. With an annual production capacity of 20 tonnes, it would supply 25% of Iran’s petrochemical needs.

Catalysts are used as the heart of chemical processing units. The catalysts used in the petrochemical sector are valued at $270 million a year. Of a total 40 major catalysts used in the petrochemical industry, 19 have hitherto been manufactured domestically while 9 more would be manufactured by next March.

Lucrative Petchem

Addressing the ceremony President Rouhani said “During the economic war of the past three years, Iran’s petrochemical industry has managed to provide 90% of national currency needs.”

He said the petrochemical industry was a profitable sector in Iran, adding: “To implement one of the projects that was inaugurated today, $1 billion has been invested over four years, while revenue from this project stands $1 billion a year.”

Touching on the 25-million-tonne increase in the petrochemical production capacity over one year, he said: “The petroleum industry has been always brilliant in Iran’s history. Particularly the 2010s was the decade of progress, victory and jump in production and development.”

“Major work has been done in the petroleum industry over this decade, ranging from oil and gas exploration to finishing big projects in Assaluyeh, from the Goreh-Jask oil pipeline project to completing petrochemical plants like Persian Gulf Bid Boland and other projects from R&D to oil compressor manufacturing, from ending gas flares to gas supply to villages including gas supply to Sistan & Baluchestan Province,” he said.

Technology Growth in Petchem

Ali Pajoohan, CEO of PRTC, said: “As a subsidiary of National Petrochemical Company (NPC), PRTC is mainly tasked with developing technical knowhow to build petrochemical plants, produce catalysts and strategic materials for petrochemical plants. Thanks to prominent scientists and researchers working at the international level, this company has over recent years made significant achievements.”

He said PRTC in 2020 developed technical knowhow for HDPE for the Tabriz Petrochemical Plant with a capacity of 300,000 tonnes, technical knowhow for HDPE at the Bushehr Petrochemical Plant with a capacity of 400,000 tonnes, the Fateh propylene production unit with a capacity of 120,000 tonnes and above call, a 900,000-tonne plant for converting natural gas to PP, including a methanol, a propylene and a polypropylene plant, in the Eslamabad Gharb Petrochemical plant. He added that a PP output enhancement plant in southern Iran would be built with PRTC-developed technology.

Pajoohan said that some specific equipment used in the petrochemical plants would be built only if its technical knowhow becomes available in the country. He added that supply of some equipment should be decided only by licensors.

“By domestic manufacturing of these technologies, we will see a significant movement in the manufacturing of parts and equipment for the petrochemical industry,” he said.

He also said the two catalyst projects were inaugurated with a total investment of about IRR 2,700 billion.

“The HDPE catalyst project was built in one year and the PP catalyst one in two years,” said Pajoohan.

Refinery Project Operational

President Rouhani also inaugurated the Parsian Sepehr refinery project. This facility has capacity to produce 3.3 million tonnes a year of ethane, propane, butane and condensate with an investment of $1 billion. It would yield $1 billion in annual revenue.

The ethane recovery unit of Parsian Sepehr Refining Company is located in the city of Mehr in southern Fars Province. The ethane separation unit of the refinery is located in Assaluyeh in Bushehr Province.

Parviz Rahat, CEO of Tadbir Economic Development Group (TEDG), said: “The project started with government permission and upon proposal by Minister of Petroleum and endorsement of Executive Committee of Imam Khomeini’s instruction with the investment of Tadbir Energy Development Group. The first line of credit was opened in 2016.”

He said that construction of the Parsian Sepehr refinery began under tough sanctions in the country, adding that its tentative startup coincided with the maximum pressure campaign.

Petchem Feedstock at 1.3mt

Mahmoud Zirakchianzadeh, CEO of Parsian Sepehr Refining Company, said: “By inaugurating the Parsian Sepehr refining project, 1.3 million tonnes a year of ethane is annually supplied to olefin units at petrochemical plants.”

“Every day, 74 mcm of rich gas from Tabnak, Shanol, Varavi and Homa is treated at the Parsian refinery to be supplied to the Parsian Sepehr ethane recovery unit in Mehr (near Phase 3 of South Pars). With a 95% ethane recovery capacity, the plant has the highest purity,” he said.

Zirakchianzadeh said 16 million tonnes of methane produced annually at the Mehr site would be fed into the urban gas distribution network. “The ethane produced at the site would be transmitted through a 63km pipeline to the Assaluyeh site for final separation and the annual production of 3.3 million tonnes of ethane, propane, butane and gas condensate,” he added.

He said that 1.3 million tonnes a year of ethane would be delivered to the ethane pipeline to feed the olefin units of the petrochemical industry, one million tonnes of propane and butane would be exported and 1 million tonnes of condensate would be produced.

“A 450,000-tonne PDH development project is envisaged for converting the propane refined at the Parsian Sepehr refinery to polypropylene and complete the chain of products. We hope that following the issuance of permission by Petroleum Ministry for allotment of land and allocation of facilities from the National Development Fund of Iran, we would see the start of construction,” he said.

250 Domestic Manufacturers

Gholam-Hossein Nozari, chairman of Parsian Oil Refining Company, said that $660 million of the $1 billion spent on the Parsian Sepehr refinery had been provided by NDFI.

He touched on hardships in the project, saying 64 kilometers of drilling had to be carried out, 34km of which had to go through mountain ranges.

“The equipment for this refinery has been built in 18 provinces and 250 domestic manufacturers have been involved in the manufacturing of equipment,” he said.

Nozari said that the main idea in this project was to complete the value chain, adding: “With the inauguration of a midstream and a downstream unit, environmental considerations would be followed as 500,000 cubic meters of carbon dioxide would be separated.”

Courtesy of Iran Petroleum