Iran’s Annual Petrochemical Production Tops 25mn Tons

Date: 02 April 2021 - 23:31

News ID: ۸۸۷۱۷

TEHRAN (Dispatches) - Iran’s Petroleum Minister Bijan Zangeneh has said that the country has produced 25 million tons of petrochemicals during the past calendar year (ended March 20).
Speaking on the sidelines of the 15th OPEC and non-OPEC Ministerial Meeting held on Thursday via video conference, Zangenehsaid, "Iran’s petrochemical production capacity reached 25 million tons in last year, and added that the year registered a glorious record for the petrochemical industry, because Iran had very scarcely been able to report an annual 25 million ton increased production capacity before.
He went on to say that Iran’s production of natural gas grew to 1000 million cubic meters per day during the same period.
Managing Director of the National Iranian Petrochemical Company (NIPC) Behzad Muhammadi had announced that the country had plans to launch eight petrochemical projects by March 20, 2021.
"A sum of 30 percent of the country’s petrochemical output is consumed domestically and 70 percent of the products are exported to international markets,” Muhammadi said.
He pointed out that the country’s petrochemical revenue generation was at a very favorable state, and said, "The petrochemical industry, as the first industry in Iran, is strengthening its foothold in the country’s economy day-by-day.”
Muhammadi said that nine petrochemical projects have come online in Iran.
"Iranian petrochemical companies supply 90 types of petrochemicals of which 18 are polymeric which are offered in 333 grades,” he added.
The official reiterated that the diversity of petrochemical products supplied domestically will reach 104 types by 2026 and 124 types by 2027.
He, meantime, said that 30 strategic projects had been defined in the industry with $16 billion of investment which would add 20 million tons to the country’s annual production capacity.

Oil Demand Has Not Reached 2019 Levels
Zangeneh said oil demand is expected to grow by 5.6 million bpd as business activities would recover, however, it has yet to reach 2019 levels, on the sidelines of the 15th OPEC and non-OPEC Ministerial Meeting held on Thursday via video conference.
The 15th OPEC and non-OPEC Ministerial Meeting was held and we reviewed the situation, he said. "Generally, OPEC and non-OPEC members stayed committed to the pact although some members failed to comply fully which caused other members’ complaint. So, it was decided to allow them to compensate for their non-compliance until September.
Global economy is expected to grow by 5 percent. Oil demand is also forecasted to increase by 5.6 million bpd as business activities would rebound, he said, adding "global oil demand decreased by 9.6 million bpd in 2020 compared to 2019 and it has yet to reach 2019 levels.”
Given the successful vaccination as well as the allocation of 1900 billion dollars by the U.S. administration as economic stimulus, OPEC+ agreed to raise oil output by 350,000 in May and June, and by over 400,000 July in order to avoid market volatility and support prices. The group also decided to hold monthly meeting to examine the condition in order to cut oil production, if needed, to avoid instability in the market.
Venezuela, Libya and Iran are still exempt from any cuts as they produce less than their traditional capacity and their historic right due to the U.S. pressure, he said.