Jafar Rabiei, CEO of Persian Gulf Petrochemical Industries Company (PGPIC), said the petrochemical project had been implemented in the midst of tough sanctions and the coronavirus pandemic with a view to increasing output to 110% of the rated capacity for supplying products of higher quality and value.

The desulfurization project at Bu Ali Sina had been long drawn out. But the Bu Ali Sina Petrochemical Company decided in August 2018 to finish the job over a 21-month period.

The project had its own hardships, including the fact that it was in the heart of a large-scale complex. Furthermore, the new equipment had to be adapted to the data of the previous systems. Add to this the toughening of sanctions and the start of the covid-19 pandemic. However, construction of the project started and it became finally operational in July. The engineering and design of the Bu Ali Sina petrochemical plant’s desulfurization had been handled entirely by local firms with more than 85% of the installed equipment having been supplied by domestic manufacturers.

The desulfurization plant transforms 350,000 tonnes of products to higher-value products. This project has so far cost IRR 7 trillion, which has created many direct and indirect job opportunities. The idea behind this project has been to sweeten the sour light fraction and transform it into products of higher value.

With this project, the value of the feedstock supplied to this petrochemical plant would increase, while sustainable production at this plant would be guaranteed. That would enable Bu Ali Sina to convert 350,000 tonnes a year of light fraction to such products as liquefied gas and raffinate.

The Amir Kabir and Bandar Imam Khomeini petrochemical plants would benefit from the feedstock supplied by this project.

Feedstock for Olefin Plants

Mohammad Ahmadzadeh, CEO of Bu Ali Sina Petrochemical Plant, said: “Between 25% and 30% of Bu Ali Sina petrochemical products are sulfur-containing light fractions which would serve local companies. In case of suspended or reduced activity, Bu Ali Sina would have to reduce its output.”

He said that the raffinate produced there would first supply local needs before being exported, adding: “That would generate revenue for the company. In the most conservative state, Bu Ali Sina would make the annual gains of IRR 4 to 5 trillion.”

He put at 350,000 tonnes a year the raffinate and LPG production capacity at the light fraction unit. He said it would make up for a 20% loss experienced in the plant output in recent years, noting that it would supply products 10% higher than installed capacity.

Proper Management                                                                                                                                                        

Safar Ali Babaee, CEO of Petrochemical Industries Development Management Company (PIDMCO), said domestic manufacturing of 130 items of equipment used in the light fraction project of Bu Ali Sina was another big achievement. “Throughout this project, we managed to domestically manufacture some equipment while with the help of experts, technical knowhow and production license were obtained.”

One outstanding characteristic of this project was to adapt the old and new equipment using the potential of local contractors. That was done without using the services of prominent foreign companies.

Timeframe Respected

Except for several equipment including compressors that had been purchased from foreign companies at the beginning of the project, the rest has been domestically manufactured. Financially speaking, 85% of this project is domestically manufactured.

The project was implemented on schedule. Despite sanctions and the COVID-19 pandemic, the initially approved budget of IRR 7,000 billion was not changed.

For this project, permits had been given to buy foreign-made products. However, NPC insisted on supporting domestic manufacturing, but in cases where foreign purchase was inevitable arrangements had been made for the transfer of technological knowhow and the partnership of an Iranian company in any foreign purchase. 

Bu Ali Sina Petrochemical Plant lies on 36 ha of land in Khuzestan Province, specifically in the Special Economic Petrochemical Zone. It is the third aromatic project of Iran’s petrochemical sector.

Courtesy of Iran Petroleum