NIOC should focus on petro-refinery projects: Parl. Research Center

June 21, 2019

TEHRAN – The Research Center of Iran’s parliament said in a report that petro-refineries are two times more profitable than refineries and suggested that National Iranian Oil Company (NIOC)’s new refinery projects be defined as petro-refineries.

The report dubbed “Petro-refineries, their role in competing the oil value chain and the status in Iran’s oil industry” stated that constructing petro-refineries is one of the most important ways to alleviate severe economic impacts of price fluctuations and achieve a much higher margin of profit, Mehr news agency reported.

The report further emphasizes the importance of completing the value chain of the oil and gas industry to increase value added and prevent crude oil sales as one of the principles that has been underlined in the country’s Sixth National Five-Year Development Plan (2016-2021).

“According to French energy giant Total, by 2020 global demand for oil products will increase by 1.1 percent while the demand for polymers increases by 3.3 percent, so with this in mind, the creation of a hybrid system of refining and petrochemicals (petro-refinery) seems a necessity,” the report read.

Petrochemical industry is one of the most important pillars of Iran’s economy and one of the main suppliers of foreign currency especially euro for the country.

Iran is currently producing near 63 million tons of petrochemical products annually and with several new projects underway, the number is expected to jump over 65 million tons, further cementing the Islamic Republic’s stance as a major petrochemical supplier to the world markets.

The country also plans to establish a new petrochemical complex in Hormozgan Province adjacent to Persian Gulf waters, which will increase the country’s petrochemical output by 15 million tons per year.
Comprising of 14 petrochemical projects in Phase I, the new petrochemical complex will be constructed in the Parsian Energy Intensive Industrial Special Economic Zone (PEISEZ).

A wide variety of industries such as power plants, aluminum complexes and petro refineries are also going to be integrated into this new hub.

Accessing diverse liquid and gas feedstock is one of the main attractions of Iran’s petrochemical industry for investors, and it is safe to say that the industry is Iran’s most lucrative industry.

EF/MA

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