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NPC Chief Stresses Need for Petchem Diversification, Higher Value-Added

NPC Chief Stresses Need for Petchem Diversification, Higher Value-Added
(Wednesday, November 20, 2024) 16:21

BUSHEHR (NIPNA) – The managing director of Iran’s National Petrochemical Company (NPC) has emphasized the importance of diversifying petrochemical production and increasing value addition in the industry’s value chain.

Speaking during a site visit to the PDH/PP project of Petro Pardis Sina in Bushehr province, Hassan Abbaszadeh urged producers to channel part of their polypropylene output into acrylonitrile (ACN) production.

"Producing ACN brings essential downstream diversity to the propylene sector, a critical need for the country," Abbaszadeh said. He added that all propane dehydrogenation (PDH) and polypropylene (PP) projects should allocate some of their output to ACN manufacturing.

Highlighting the significant export of raw propane, Abbaszadeh called for accelerating the establishment of PDH/PP projects to convert propane into propylene and polypropylene, thereby reducing reliance on raw material exports.

The NPC head praised Petro Pardis Sina for integrating an ACN production unit alongside its propylene and polypropylene plants. "Currently, domestic polypropylene production is under one million tons annually," he said, pointing out the potential for expansion.

The PDH/PP project in the Pars Special Economic Energy Zone (Kangan region) is designed to produce 600,000 tons of propylene, 300,000 tons of polypropylene, and 260,000 tons of ACN annually. Spanning 40 hectares, the project aims to enhance the production chain, boost exports, and generate employment, with an estimated investment of $1 billion.

Abbaszadeh confirmed NPC’s readiness to support the project, noting that feedstock supplies are secured and negotiations are ongoing to address water requirements.

This site visit was part of Abbaszadeh's first operational trip to Bushehr province, which included inspections of the Petro Pardis Sina PDH/PP plant, Kangan Petro-refinery, and discussions with managers of investment group projects under the Ahdaf umbrella, including Soroush Mahestan, Negin Mahestan, and Alay Mahestan.

The NPC’s push for diversification aligns with broader efforts to strengthen Iran’s petrochemical sector, enhance export capabilities, and reduce dependency on raw material sales.

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