Iran plans new petrochemical hub to ease exports to Asia

17 Apr '13

2 min read

In order to ease petrochemical exports to India and China, Iran is planning to set up a new petrochemical hub in the south-eastern port city of Chabahar near the Sea of Oman, Abdolhossein Bayat, a Deputy Oil Minister of Iran, has said.

According to the official, the new hub would greatly help in cutting the cost of exporting petrochemicals to India and China, according to a Press TV report.

Establishment of the proposed hub would involve an investment of US$ 20 billion and would boost the country’s petrochemical production capacity by 15 million tons, Mr. Bayat, who is also the Managing Director of National Petrochemical Company (NPC), said.

The need for establishment of the third petrochemical hub in the country has mainly been stirred by industrial and economic growth in east and south-east Iran, he added.

The first two hubs have been set up in Mahshahr, an oil-affluent city in south-west Iran and in Assaluyeh, which has huge installations of the offshore South Pars Gas Field.

During last Iranian calendar year, which ended on March 20, 2013, Iran earned around US$ 12 billion by exporting its petrochemical product to around 60 countries, mostly in South and South-east Asia.

With an aim to become Middle East’s largest petrochemical producer, Iran has considerably developed its petrochemical production volume and product range over the past few years.

Iran is currently the second biggest producer and exporter of petrochemicals in the Middle East, next only to Saudi Arabia.

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