Petrofarhang Focused on Strategic Entry into Petchem Downstream

Petrofarhang Focused on Strategic Entry into Petchem Downstream
(Monday, February 12, 2024) 14:39

TEHRAN (NIPNA) -- The CEO of Petrofarhang Holding outlined the holding's plan for a strategic entry into the downstream sector of the petrochemical industry, stating that extensive planning has been carried out to utilize the highest volume of methanol produced in three companies, Kimia, Sabalan, and Dena, as feedstock for other petrochemicals. This move aims not only to generate sustainable wealth for the Cultural Foundation's endowment but also to mitigate the greatest risk faced by Petrofarha

According to Petrofarhang Holding, Javad Zarepour, speaking at the annual general meeting of shareholders, stated, "Earning $770 million in the fiscal year ending in September 2023 in subsidiary companies was one of the targeting objectives to support the national economy achieved under difficult sanction conditions."

Zarepour continued, "About 80 percent of Petrofarhang's investment basket was previously allocated to the methanol sector, posing the biggest risk to the conglomerate. Therefore, we plan to reform the investment portfolio and enter downstream industries such as acetic acid, vinyl acetate monomer, polymers, and synthetic ethanol to transform this risk into a valuable opportunity."

Elaborating on the future plans, Zarepour revealed that by 2028, all methanol produced in Kimia Petrochemical would be used as feedstock for the Parsian Moonlight project, with an annual capacity of 1.65 million tons. Additionally, 533,000 tons of methanol and the equivalent of 578,000 tons of synthesis gas from Dena and Sabalan's methanol production capacity would be utilized to supply feedstock for the Lavan chemical downstream project.

Highlighting the forthcoming commissioning of Dena and Siraf Energy petrochemical plants in the next two years, Zarepour emphasized the significant focus on selling the produced goods efficiently across subsidiaries. He mentioned plans to establish a streamlined and versatile sales mechanism to concentrate the sale of all produced goods under a defined framework, aiming to enhance productivity and streamline the system.

Zarepour also underscored Petrofarhang's commitment to supporting domestic production, noting its pioneering efforts in indigenous catalyst synthesis, particularly for Sabalan Petrochemical Plant. He highlighted the benefits reaped by many other production units from this initiative.

Concluding his remarks, Zarepour declared that transparency in financial and transactional affairs is a paramount principle within the holding.

He announced the implementation of an integrated transactional system and a comprehensive human resources system across the holding and its subsidiaries to ensure transparency and accountability, thereby combatting corruption and injustice and solidifying these principles as corporate fundamentals.

Email is required
Characters left: 500
Comment is required