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Efficient Gas Consumption: A Key Strategy for Sustaining Petchem Feedstock

Efficient Gas Consumption: A Key Strategy for Sustaining Petchem Feedstock
(Monday, January 6, 2025) 16:37

TEHRAN (NIPNA) – Hassan Abbaszadeh, CEO of the National Petrochemical Company (NPC), emphasized that optimizing gas consumption is the most immediate and effective solution for ensuring a sustainable feedstock supply for Iran's petrochemical industry.

At a signing ceremony for a memorandum of understanding (MoU) between NPC and Zagros Petrochemical Company, Abbaszadeh explained that Iran’s substantial natural gas reserves—producing over 800 million cubic meters of gas per day—remain underutilized, particularly during the cold winter months when daily gas consumption can surge by as much as 700 million cubic meters. He noted that around 50% of this gas is allocated to residential and commercial sectors, with 26% consumed by power plants that have lower efficiency rates.

Optimizing Gas Use to Ensure Petrochemical Feedstock

Abbaszadeh pointed out that one of the major challenges facing the petrochemical sector in achieving its 131 million-ton production capacity target under the 7th development plan is securing a stable and sustainable feedstock supply. He noted that around 21% of the current petrochemical capacity is not being utilized due to the lack of feedstock, representing a significant loss of about $18 billion in investment.

Collaborative Approaches to Sustainable Feedstock

NPC has formed a committee to explore and implement sustainable feedstock solutions. Investment in oil fields and the accelerated signing of related contracts is one of the key strategies being pursued. Abbaszadeh also highlighted the importance of utilizing associated gas—specifically from the Bid Boland refinery and the Maroon Petrochemical Plant—as part of efforts to secure sustainable petrochemical feedstock.

Another notable initiative is the NGAL 3100 project, which is scheduled to begin operations this year, and the planned construction of a pipeline connecting Dehloran to NGAL 3200, which will contribute to feedstock availability and reduce shortages in the Mahshahr petrochemical complex.

Leveraging Alternative Fuels and Technologies

Abbaszadeh also discussed using alternative fuels, such as LPG and coal, to ensure feedstock availability. For example, Khorasan Petrochemical Company, located far from Iran's main gas sources, plans to convert coal into electricity to meet its feedstock needs. The project has been evaluated for environmental standards, and it will not pose any concerns.

Optimizing Gas Use Through Simple Measures

Highlighting the simplicity and speed of optimizing gas consumption, Abbaszadeh noted that actions like culture change and equipment upgrades could quickly generate savings. He praised Zagros Petrochemical for its leadership in the initiative to reduce gas and electricity consumption by 10% in residential and commercial sectors.

He also expressed gratitude to Toqqali, CEO of National Gas Company, for his support in addressing the challenges faced by the petrochemical industry.

NGO Collaboration and Local Industry Support

NPC will collaborate with national charity organizations to manage energy consumption, with NGOs playing a vital role in spreading the 10% reduction campaign. The initiative will also benefit domestic manufacturers by creating demand for equipment such as heating devices, with plans to replace 4,000 heaters.

Abbaszadeh concluded that the success of this initiative would set the stage for further optimization projects next year, emphasizing the need for continued cooperation between industry associations, petrochemical holdings, and individual companies to resolve challenges and strengthen the sector's performance.

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