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Gachsaran Petchem Project Nears Inauguration

Gachsaran Petchem Project Nears Inauguration
(Tuesday, July 11, 2023) 23:31

TEHRAN (NIPNA) - The imminent inauguration of the Gachsaran Petrochemical Project marks a significant milestone in Iran's industrial sector.

The Deputy for Planning and Business of Persian Gulf Petrochemical Industries Company underscored the company's readiness for the official unveiling of the project. With the production plan already achieving 40 to 50 percent of its designated capacity in the second half of this year, sales estimates soar to approximately $300 million.

During a press conference held on Tuesday, July 11, Hassan Neshanzadeh Moghadam, speaking about the Gachsaran Petrochemical Project, highlighted the city of Gachsaran as one of Iran's oil hubs, hosting the region's inaugural oil well back in 1939. Gachsaran, well-versed in the intricacies of the oil and gas industry, boasts a state-of-the-art industrial petrochemical complex. Presently, the Gachsaran Petrochemical Project, situated in the province of Kohgiluyeh and Boyer-Ahmad, is on the cusp of its final operational stages, becoming the region's foremost industrial facility.

The elevation of Persian Gulf Petrochemical Industries Company's status and the realization of development plans within the fifth and sixth development programs stand among the Persian Gulf Holding Company's core objectives. The company's roadmap encompasses the completion of semi-implemented projects and the activation of idle capacities within its subsidiary complexes.

Elaborating further, Neshanzadeh expounded on Persian Gulf Holding Company's diverse plans to gather associated gases and preserve natural gas liquids (NGL) units in the oil-rich areas of Khuzestan province, spanning both the eastern and western regions of Karoun. An optimistic outlook anticipates the supply of a portion of the requisite feedstock for Bandar Imam Petrochemical Complex and Bidboland Refinery in the Persian Gulf within the next two years.

Among Persian Gulf Holding's semi-implemented plans, the completion of Hoveizeh Gas Refinery earlier this year has been realized after enduring numerous challenges. This refinery currently supplies Bandar Imam Petrochemical Complex and C5+ Petrochemical Company in Ilam with 25 to 30 tons of feedstock per hour.

The successful completion of the Gachsaran Petrochemical Project, following 19 years since the issuance of its license, aligns with the strategic objective of completing the value chain and harnessing the potential of associated gases. The Persian Gulf Holding Company regards this achievement as a critical mission. Challenges over the past five years, including shareholder composition, managerial changes, contractor diversity, financial resources, and sanctions, have been surmounted in the implementation of the Gachsaran Petrochemical Project.

Comprising an array of meticulously planned projects, the Gachsaran Petrochemical Project aims to receive 1.25 million tons of ethane from the Bidboland Refinery, synchronizing with the completion of the value chain, reducing crude oil sales, and supplying feedstock to downstream complexes such as Masjed Soleyman, Dehdez, Borujen, Kazeroon, and Gachsaran Polymer. This project stands as a testament to Iran's commitment to domestic sourcing, with 83 percent of its requirements in mechanical, electrical, catalyst, chemical materials, and other equipment sectors being fulfilled domestically. Notably, this marks the first instance of furnace burners being manufactured domestically within a domestic unit.

Throughout its construction phase, the Gachsaran Petrochemical Project has generated direct employment opportunities for over 3,000 individuals. Upon commencing operations, the facility is expected to employ approximately 1,000 individuals directly and provide indirect employment for up to three times that number.

Prioritizing the alignment of the petrochemical industry with regional climate conditions and environmental conservation, the Persian Gulf Holding Company has successfully implemented one of the most advanced industrial wastewater treatment systems as part of the Gachsaran Petrochemical Project.

With an annual production capacity of one million tons of ethylene and 83,000 tons of C3+, the Gachsaran Petrochemical Project will annually receive 1.25 million tons of feedstock from the Bidboland Refinery through a 90-kilometer pipeline. The required water supply for this complex is facilitated through the Kowsar Dam.

Reflecting on Persian Gulf Holding's production growth, which reached an additional one million tons in 1401 compared to 1400, total sales for the holding rose from 256 trillion tomans in 1400 to 460 trillion tomans in 1401.

The Deputy for Planning and Business of Persian Gulf Petrochemical Industries Company concluded by reaffirming that the Gachsaran Petrochemical Project has achieved around 40 to 50 percent of its designated capacity in the second half of this year. With such production levels, estimated sales are anticipated to reach approximately $300 million.

Furthermore, Neshanzadeh highlighted a 3.5 percent increase in Persian Gulf Holding's three-month production at the start of 1402 compared to the corresponding period of the previous year.

While the downstream petrochemical units of the Gachsaran Petrochemical Project are still under construction to receive feedstock, the complex's products are not limited to domestic consumption. In addition to injecting ethylene into the West Ethylene Pipeline, the complex has inked an ethylene export contract, positioning itself as a significant contributor to Iran's petrochemical exports.

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