Basically the petrochemical
industry converts natural
gas and crude oil into products
of much higher added value for
use in downstream industries. In
turn the products of this industry
can be used as raw materials
to produce further products of
higher added value and of great
use in industrial productions.
Some of these even have
strategic uses in diverse fields
from agriculture to aerospace.
Chemical fertilizers, plastic
containers and utensils, textiles,
paints and dyes, glues, home
appliances, tires, detergents…
are some of the very numerous
end products of petrochemicals
or are products in which end
products of this industry have
been used. In the past, the main
feedstock of the petrochemical
industry was crude oil. Even
today in most parts of the
world where natural gas is not
found, local crude or imported
crude (e.g. in Japan) is used
to produce petrochemicals,
because gas is not easy to ship
from one country to another.
But in a country like Iran, that
is rich in natural gas resources,
conditions are ideal for a more
productive and cost-effective
petrochemical industry based on
natural gas instead of crude oil.
The idea of establishing a
proper petrochemical industry
in Iran came to the minds of
our authorities about 50 years
ago and plans were made for
an industry of considerable
size to be developed over a
certain period of time. The first
step was the setting up of a
fertilizer plant in Marvdasht of
Fars province less than 50 years
ago (1959). But for some years
after the Islamic Revolution the
plans were not followed mainly
because of Iran-Iraq war.
As soon as the war was ever
expansive efforts were made
and the industry developed and
expanded very rapidly, so much
so that a Special Petrochemical
Free Zone was created in the
southern parts of Iran not far
from oil and gas reserves and on
the sea, with proper facilities for
loading cargo ships for exports.
Furthermore, close to many
provincial capitals of the country,
Isfahan, Tabriz, Arak, Khorasan,
Shiraz, Bandar Imam Khomeini...
and on Kharg Island, large
petrochemical complexes have
been built.

Iran is keen on expanding its
non-oil exports and plans to
raise the value of such exports
during the Iranian year 1383
(2004-2005). Already during the
first 10 months of 1382, non-oil
exports have reached the level
of 7.36 USD which is 3b USD
more than the value of exports
during the entire 1382 and of
which 2b USD are derived from
export of petrochemicals.
To expand this industry further,
the body in charge of the
industry, National Petrochemical
Co, holds international seminars
from time to time as well as
an annual event, the Iran
Petrochemical Forum. The next
and the 6th is going to be held
on 1st and 2nd of May 2004.
Scholars, experts and potential
investors would be welcome to
participate.  |