Expansion of the petrochemical industry
In 1989 the Planning and Development Department of NPC initiated, with the help of other related institutions and individuals, a long-term study on the "Strategic Plan for the Development of the Petrochemical Industry in Iran". Considering national and international factors such as the local market, export potentials, feedstock availability and profitability, a 25-year development plan, consisting of five development phases, was drawn up.
Business Monitor International (BMI) estimates that in 2009, Iranian petrochemicals exports will be around $7.9 billion, 32 percent above the previous year. Iran hopes to implement 47 new petrochemical projects by the end of the Fifth Five-Year Economic Development Plan in 2015 at a cost of $25 billion, adding a total of 43 million tons per annum (tpa) to the capacity.[23][24] Iran will represent at least 5.3 percent of global petrochemical output and 36 percent of Middle Eastern production once those projects become online. The Ministry of Petroleum of Iran has set targets for annual production of 11.5 million tpa of ethylene, 11.5 million tpa of polymer and 3.4 million tpa of urea, with a target of becoming the world's leading producer of methanol with 7.5 million tpa of methanol capacity, which represents 18 percent of global capacity.[25]
Iran National Petrochemical Company's output capacity will increase to over 100 million tpa by 2015 from an estimated 50 million tpa in 2010 thus becoming the world' second largest chemical producer globally after Dow Chemical with Iran housing some of the world's largest chemical complexes.[26][27][28] 50 billion dollars will be invested during the fifth five-year development plan (2011–2016) to create this new capacity.[20]
Projects due to be completed by 2016, such as the 14th olefins complex in Firouzabad with 1mn tpa ethylene capacity, the 15th olefins complex in Genaveh with 500,000tpa of ethylene and the 17th olefins complex in Ilam with 607,000tpa of ethylene, were significantly delayed under the sanctions regime. Meanwhile, the 12th olefins complex has been postponed and will be configured. However, the 16th olefins and methanol complex is already being constructed by Bushehr Petrochemical Company as part of phase two of the Pars SEZ at Assaluyeh. Completion of the plants, with capacity for 1mn tpa ethylene and 1.65mn tpa methanol, is due in 2014, although past experience has shown that delays could push commercial production back.[29]
Research and development
There are essentially four locations where R&D in the area of petrochemicals are conducted:[30]
NPC is investing more on its R&D activities: this includes carrying out joint research projects with local institutions and universities; systematic link with local and foreign research centers; and design and operation of pilot plants for research purposes. As fo 2011, Iran is highly dependent on foreign expertise in the petrochemical sector, Germany holds a 35 per cent share in Iran's petrochemical production (i.e. licenses). UK, France and the Netherlands rank the next with 18 per cent share, 12 per cent share and 11 per cent share, respectively.[31]
As of 2012, self-sufficiency in manufacturing and repairing rotating equipment and providing catalysts are the main challenges of the petrochemical industry in Iran. Domestic production of 52 petrochemical catalysts will be started in 2013 onward.[32] 70 percent of the equipment used in the petrochemical sector is produced by domestic manufacturers.[33]
