Iran’s National Petrochemical Company (NPC)’s production manager, Ali Mohammad Bosaqzadeh, confirmed that Iran had increased its petrochemical production levels to 22.8 million tonnes, during the first half of the current Iranian calendar year.
During the previous year, Iran exported 40 million tonnes of petrochemicals. The increase in production equates to a year on year increase of nearly 15%.
A number of regional analysts have suggested that Iran will look to step up its petrochemical production levels in the very near future.
“Over the last couple of decades, Iran has not had an opportunity to fully expand into the petroleum sector. They have huge reserves and I am sure that a country like Iran will take full advantage of this. They will get into higher production, higher refining capacity and this region will have a higher flow of products,” explained Thangapandian Srinivasalu, director, Gulf Petrochem.
This increase in production of refined products indicates Iran’s desire to diversify its economy away from over reliance on unrefined crude exports.
As the price of oil continues to slide, economies across the region are starting to feel the pinch. Iran is feeling it more sharply than its neighbours, however, as western sanctions severely limit the amount of crude the Islamic Republic can export.
Economies of scale mean that Iran requires a much higher crude price per barrel than its Middle Eastern neighbours to balance its economy. According to recent IMF estimates, Iran needs a base price of around $130 per barrel in order for its economy to function correctly. With the current price of crude down around the $80 mark, Iran is looking at a large deficit in its economy.
In order to bridge this gap, Iran is looking to ramp up production of its higher value refined petrochemical products.
Iran exported $7.6bn of petrochemical products during the last seven months, indicating an 18% increase in export revenue compared to last year. However, demand for natural gas over the winter period will place a strain on Iranian gas feedstock supplies.
Staff Writer
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Iranian petrochemical production surges by 15%
Low oil prices cause Iran to look to higher value refined products to balance its economy
Iran’s National Petrochemical Company (NPC)’s production manager, Ali Mohammad Bosaqzadeh, confirmed that Iran had increased its petrochemical production levels to 22.8 million tonnes, during the first half of the current Iranian calendar year.
During the previous year, Iran exported 40 million tonnes of petrochemicals. The increase in production equates to a year on year increase of nearly 15%.
A number of regional analysts have suggested that Iran will look to step up its petrochemical production levels in the very near future.
“Over the last couple of decades, Iran has not had an opportunity to fully expand into the petroleum sector. They have huge reserves and I am sure that a country like Iran will take full advantage of this. They will get into higher production, higher refining capacity and this region will have a higher flow of products,” explained Thangapandian Srinivasalu, director, Gulf Petrochem.
This increase in production of refined products indicates Iran’s desire to diversify its economy away from over reliance on unrefined crude exports.
As the price of oil continues to slide, economies across the region are starting to feel the pinch. Iran is feeling it more sharply than its neighbours, however, as western sanctions severely limit the amount of crude the Islamic Republic can export.
Economies of scale mean that Iran requires a much higher crude price per barrel than its Middle Eastern neighbours to balance its economy. According to recent IMF estimates, Iran needs a base price of around $130 per barrel in order for its economy to function correctly. With the current price of crude down around the $80 mark, Iran is looking at a large deficit in its economy.
In order to bridge this gap, Iran is looking to ramp up production of its higher value refined petrochemical products.
Iran exported $7.6bn of petrochemical products during the last seven months, indicating an 18% increase in export revenue compared to last year. However, demand for natural gas over the winter period will place a strain on Iranian gas feedstock supplies.
Staff Writer
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and... More by Staff Writer
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