Russian Center for Strategic assessment and Forecasts (CSAF), translated IRNA”s interview with “Nadali Bay”, Director of Iranian Naphtha Center for International & Strategic studies (NCISS) and Chief Editor of NaftEMA, on the prospect of Iran’s petrochemical industry in post-sanctions era into Russian and English , which were published in more than twenty Russian websites.
NaftEMA: In Iran the petrochemical industry makes big profit and gives many workplaces therefore after cancellation (lifting) of the sanctions imposed against the country it is in the center of attention of foreign investors. In this regard the prospect of development of this branch is considered very iridescent.
Being expressed more precisely, the petrochemical industry represents a part of the chemical industry as goods received by it is made of oil or natural gas. Thus, this goods is used not only as fuel and engine oil, but also for production of set of necessary details for production of vehicles. Goods of the given kind also is necessary for creation of guided missiles, spaceships and companions.
The petrochemical industry of Iran has been pledged in 1959 when in the country the Chemical fund and after this there has begun the work factory on production of chemical fertilizers has opened. In five years for the purpose of consolidation and development of the given industry the National petrochemical company production of petrochemical and chemical items from oil and its products, natural gas and other kinds of fossil raw of an organic origin became which purpose has been based.
Originally national petrochemical company has based a number of associations, such as Farabi, Khark, Pasargad, Carbon Ahvaz and Razi, and also has started some projects on petrochemistry development in Shiraz. As it is known, presently petrochemical goods is used in production of some items, for example, tyre covers, plastic, washing-up liquids, fertilizers, glues, paints and the artificial fabrics, which in itself also are raw for other kinds of goods. The analysis of the given industry allows to draw a conclusion that throughout all last years it was one of important sectors of industrial production of Iran and actively developed.
Special position of petrochemical industry has caused that fact that she began to play the central role in national economy of Iran, after all its major advantage considers possibility of provision of internal production own raw. Iran is rather not bad provided by natural resources, therefore at the expense of development of the given industry it is possible not only to compensate some internal requirements, but also to earn on accessory cost of this raw that will lead still bolshemu to national economy development. A wide spectrum of petrochemical goods not only in a condition to fill uncountable gaps in local production. The matter is that development of corresponding sectors of the given industry without fail will play a considerable role in provision of goods of wide demand and reducing of dependence on foreign markets.
The last years the Iranian petrochemistry has reached considerable successes in respect of production of basic goods. Representatives of a private sector, investors and those initiators or other projects therefore it was possible to achieve serious shifts in processing of raw in the field have actively started working and to lift it on absolutely new level.
Now Iran should develop the given industry with special gravity to cease to sell abroad not processed raw. Under condition of successful work of the given sector of economy the processed Iranian oil will arrive on foreign markets on bolshej the added cost. The analysis of oil export of the country shows that half of the currency means received in such a way, is provided at the expense of oil sale. Besides "oil", the major articles of the Iranian export are gas and petrochemistry products. In economic elevating these kinds of the goods could provide to the country enormous profits. Their huge importance for national economy just also became the reason of that sanctions have concerned also to petrochemical industry therefore its export was reduced to two thirds.
As a whole, it is possible to tell that the sustainable development of the Iranian petrochemical industry will allow to create even more workplaces, will lift cost of the received goods, and, having filled up a price chain of raw goods, will be forms a basis for development of processing industry. Moreover, world experience says that against the international competition in different spheres reducing of production costs and reasonable use of the newest technologies, effective methods of management and attraction of capitals becomes indispensable pledge of prosperity of the given industry. So development in the country of such models as petrochemical parks and the companies, can lead to elevating of the given industry and development of separate provinces.
On the occasion of Day of petrochemical industry Nadali Baj marked in Iran (Nadali Bay), the director of the Center of the international researches in the field of power strategy at the Iranian Academy of engineering science NEPTA (NAPHTHA CENTER FOR INTERNATIONAL & STRATEGIC STUDIES (NCISS),, has given interview to news agency IRNA in which has told about present position in this industry in Islamic Republic. As he said, Iran takes the second place in the world on the reconnoitered stocks of natural gas and the given circumstance creates rather favorable possibilities for development of the Iranian petrochemical industry which has chance to take a worthy place in the world markets and successfully to compete to foreign manufacturers in own territory. The Iranian market as the expert confirms, uses a number of advantages, including cheap raw, easy access to the world and regional markets, and thanks to it it is in the centre of attention of foreign and especially European investors. In other words, the given circumstance is a basis for active external financing, and realisation of the signed nuclear agreement in the future will create even more conditions for development of this industry.
Having specified in the unfair sanctions imposed to Iran by world powers and the international organisations because of actually peace nuclear program, the director of the Center of the international researches in the field of power strategy has declared: «After cancellation (lifting) of trading sanctions the petrochemical industry of Iran will develop more towards export. The national government expects that next year export of the given kind of goods will be even more, than before entering of sanctions. As Iran takes the second place in the world on the reconnoitered stocks of natural gas, after cancellation (lifting) of sanctions its petrochemical industry will receive fine possibility again to develop on internal and foreign markets».
During the interview of Nadali Baj also has reported: «According to the instruction of US president Barack Obama and the European Union declaration, till January the sanctions entered against the petrochemical industry of Iran and concerning such spheres, as the finance, technical know-how, the equipment and export of goods should be cancelled. Simultaneously with it after signing of the nuclear agreement between Iran and group« 5+1 »deliveries in the countries of European Union of petrochemical and polymeric goods the annual income from which should constitute from two to two and a half billions dollars have renewed. By the way, before entering of the international sanctions to Europe it was delivered 10 - 14 % of petrochemical goods of Iran».
Having noted certain achievements of the Iranian petrochemistry, Nadali Baj has declared: «Establishing the reasonable prices for the goods, Iran most advantageously is engaged in export to the European Union countries and competes to the old competitors, such as Saudi Arabia. Since 2008 the European Chemical Agency registers chemical goods of the different countries and petrochemistry and polymers from Iran, having received all necessary permissions, also have appeared in the purchasing list of EU member states. Though in sanctions export of the Iranian products of petrochemistry to Europe has not stopped completely, it was substantially reduced in view of restrictions on insurance, problems with currency transfers and difficulties on chartering of courts».
Concerning prospect of development of the Iranian petrochemistry after cancellation (lifting) of sanctions, the director of the Center of the international researches in the field of power strategy has reported: «Sanctions have led to an economic sluggishness and restrictions on export of Iranian petrochemical goods that was reflected in this industry and manufacturers. Because of sanctions of the investment into the Iranian power sphere have faced certain restrictions, however in view of specific features of the national market many investors would wish to work actively in Iran. For this reason the next years in the country it will be placed in operation even more enterprises of the petrochemical industry and it is predicted that the offer of the given kind of goods also will increase. In view of that fact that European Union sanctions will remain only till the January, any unexpected increase in export of the Iranian petrochemistry up until that time is not expected».
Having noted favorable conditions of Iran in the plan for development of petrochemical production, the expert has declared: «Under forecasts of analytical company Business Monitor International, after coming into force of the nuclear agreement for development of petrochemical industry in Iran the most favorable conditions and export of the given kind of goods will be created will be increased. Till now the Iranian petrochemical industry did not use all stocks of gas available in the country. To correct this situation, it is necessary to optimise costs and accessory cost, and also to increase production of natural gas, to warrant deliveries of raw to cleaning and processing petrochemical complexes».
In the end of the interview of Nadali Baj named major factors of success of the petrochemical industry leadership in respect of technologies and commodity markets, economy of expenses and inflow of investments and has explained: «All these factors need to be used properly that production efficiency was as it is possible above. As a whole, it is necessary to recognise that investment possibilities in sphere of the Iranian petrochemical industry are not used still to the full. The matter is that this industry has a favorable infrastructure for the development and it is favourable to large foreign companies to put in it own means, therefore it is possible to conclude that the Iranian petrochemical industry has rather enviable prospect.