Progress of Alai Mahestan Petchem Project Exceeds 44%

Progress of Alai Mahestan Petchem Project Exceeds 44%
(Monday, February 26, 2024) 17:16

TEHRAN (NIPNA) - Alai Mahestan Petrochemical Project's physical progress has reached approximately 44.13% by December, with contracts already in place with domestic companies to supply seventy percent of the necessary equipment for the project.

According to Alai Mahsatan Petrochemical's public relations, Asghar Tavakoli stated: "So far, over 50 million euros have been saved in foreign exchange from the procurement of equipment needed for this project, and it is anticipated that the project will be operational by July 2025."

Referring to the annual production capacity of three hundred thousand tons of this petrochemical in the first year of operation, he added: "The final product of this project is polypropylene, which will be produced in the country for the first time using the innovative PDH method at Alai Mahestan Petrochemical Project."

The CEO of Alai Mahestan Petrochemical continued: "The feedstock for Alai Mahestan Petrochemical is provided through the Petrorefining Company of Kangan, with a contract already in place. At its maximum nominal capacity, this petrochemical unit has the ability to produce 450,000 tons of polypropylene annually. The majority of the unit's output will be exported, generating approximately €500 million annually for the country and the Petroleum Industry Retirement Fund."

Tavakoli stated: "Over the past two years, the project has had an average monthly physical progress of 1.65 percent."

Referring to the annual production of one million three hundred thousand tons of polypropylene in the country, he emphasized: "Currently, about 100,000 tons of polypropylene are imported into the country annually. Given the downstream industry projects underway in the country in the coming years, the demand for this product is expected to reach 2 million tons."

The CEO of Alai Mahsatan Petrochemical emphasized: "The current global production of polypropylene is 90 million tons annually, with its global demand expected to grow by 6.4% each year."

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