Kian
Petrochemical project is one of the most strategic petrochemical plants in the
country in line with the sustainable development of the petrochemical industry
and creation of highly value-added projects, and construction of the first
phase of the facility officially began on Monday.
CEO of Parsian
Oil and Gas Development Group Vahid Mahmoudi stated Kian Petrochemical project
includes a set of olefin and downstream units that have a high added value in
the petrochemical industry compared to existing chains.
He added:
"Kian Petrochemical Plant is designed in two phases, the first phase will
be heavy olefin and polyethylene units and the second phase will be propylene
oxide, ethyl benzene and styrene monomer units and oxo-alcohol units; the total
investment of phases one and two is about 3.5 billion euros."
The CEO of
Parsian Oil and Gas Development Group pointed to the implementation of this
project in the second phase of Assaluyeh Petrochemical Special Zone, and said
60% of this company belongs to Parsian Oil and Gas Development Holding and 40%
belongs to Petrofarhang Holding.
Mahmoudi stated
that the contractor of the Olefin unit is Oil Industries Engineering and
Construction (OIEC) which has developed it under an EPCC contract, adding that
the amount of this contract is 1 billion and 360 million euros and the license
of this unit is from the Germany’s Linde.
The CEO of
Parsian Oil and Gas Development Group Company, pointing out that 450,000 tons
of ethylene and 450,000 tons of heavy polyethylene will be produced in the
heavy polyethylene unit, continued: Nargan Company is the contractor of this
unit under an EPCC contract with an investment of about 8. 5 million euros.
Mahmoudi stated
that the rate of return on capital of Kian Petrochemical Plant is 27%, and
said: "This project is one of the most attractive projects in terms of
rate on return and in terms of unit size and having a collection from olefins
to heavy and low polyethylene products, it is one of the largest projects ever
built [in the country]."
Emphasizing that
the priority of his holding is to use domestic forces, Mahmoudi said: "In
the implementation of Kian Petrochemical project, maximum efforts will be made
to use domestic production, and this project, as one of the largest
petrochemical projects in the country, will create employment for about 3,000
people during construction and operation phases."