The National Iranian Petrochemical Company (NIPC), a subsidiary to the Iranian Petroleum Ministry, is owned by the government of the Islamic Republic of Iran. It is responsible for the development and operation of the country's petrochemical sector. Founded in 1964, NIPC began its activities by operating a small fertilizer plant in Shiraz. Today, NIPC is the second largest producer and exporter of petrochemicals in the Middle East. Over these years, it has not only expanded the range and volume of its products, but it has also taken steps in areas such as R&D to achieve more self-sufficiency.

Two special economic zones on the northern coast of the Persian Gulf have been developed to be home to the NIPC’s new project. These two zones enjoy a good access to feedstock, infrastructural facilities, local and international markets and skilled manpower. Despite pressure being exerted on the Islamic Republic over its nuclear program, Tehran expects to see a surge in petrochemical exports from $5.5 billion in 2007 to a total of nearly $9 billion in 2008.^[1] The Fourth Five-Year Plan (2005-10) calls for a fourfold expansion of petrochemical output, to 56 million tons per year.^[2]

Contents 1 History 2 Main activities 3 Foreign investment 3.1 Special industrial economic zones 4 Privatization 5 Expansion of the petrochemical industry 6 Research & development 7 NIPC affiliate companies 8 See also 9 References 10 External links

[edit] History

Iran petrochemical industry dates back to 1963. The first petrochemical complex to produce fertilizer kicked off then. In 1977 (considered as initial development in Iran petrochemical industry) Razi, Abadan, Kharg, Farabi, Bandar Imam, complementary phase of Shiraz and Iran-Carbon of Ahwaz petrochemical units were put into operation in that year.

Due to getting involved in imposed war, Iran oil industry development experienced the lowest growth rate from 1978 till 1989. In 1989 the country petrochemical products reached 2.4 million tons a year.

Since 1989 till 1999 petrochemical industry started to reconstruct and revitalize. Isfahan, Arak, Khorasan, Orumiyeh and Tabriz Petrochemical complexes were constructed and Bandar Imam Petrochemical Complex was also developed. This happened at the end of Country Second Development Plan and country petrochemical products surpassed 12 million tons per year.

The forth period –called stabilizing and sudden growth period- started in 1999 and has been continued till now.

Nouri (Borzouyeh), Pars, Jam, Zagros, Pardis, and Mehr are considered world well-known complexes in producing petrochemical and polymer products.^[3]

[edit] Main activities

NIPC's major activities are production, sale, distribution and export of chemicals and petrochemicals. Currently allied with 56 subsidiaries, including 9 production complexes and 18 project implementing companies, NIPC operates as a mother company handling policy-making, planning, directing and overseeing the activities of its subsidiaries and affiliates.

[edit] Foreign investment

In accordance with the government policy on rapid development of the petrochemical industry, many steps have been taken to make foreign investments in this industry more attractive for our future joint-venture partners. Such actions include creation of special industrial economic zones, revision of legal to taxes and tariffs, guarantee of capital and profit transfer, and providing the required utilities and the needed infrastructure for industrial and commercial operations. The availability of a highly trained but inexpensive work-force and a sizable internal market, will also work in Iran's favor, to attract foreign investment.^[4]

[edit] Special industrial economic zones

To provide a suitable environment for attraction of foreign and local investments in the petrochemical industry, NIPC has made a great effort to develop two special economic zones, one in Bandar Imam in the town of Mahshahr called "Petrochemical Special Economic Zone (Petzone)" and the other in Assaluyeh named "Pars Special Economic/Energy Zone (PSEEZ)".

[edit] Privatization

Local and foreign, is essential for sustained growth of the petrochemical industry in Iran. Policies for encouragement of private sector participation include allocating NIPC shares to private sector both inside and outside of Iran; supporting local private sector investments in the petrochemical industry; supporting local engineering firms and production companies; allocating parts of engineering, and most of construction jobs, to the local private sector; and allowing the private sector to invest in new projects in the petrochemical industry.^[4]

NIPC plans to privatize 17 subsidiary companies by the end of 2007.^[5] All shares of domestic petrochemical firms will be offered to the public in the frame of a holding company by the end of the present Iranian year (March 21, 2010).^[6]

[edit] Expansion of the petrochemical industry

In 1989 the Planning and Development Department of NIPC initiated, with the help of other related institutions and individuals, a long-term study on the "Strategic Plan for the Development of the Petrochemical Industry in Iran". Considering national and international factors such as the local market, export potentials, feedstock availability and profitability, a 25-year development plan, consisting of five development phases, was drawn up.^[4]

Business Monitor International (BMI) estimates that in 2009, Iranian petrochemicals exports will be around $7.9 billion, 32 percent above the previous year. Iran hopes to implement 47 petrochemical projects by the end of the Fifth Five-Year Economic Development Plan in 2015, adding a total of 43 million tons per annum (tpa) to the capacity.^[7] Iran will represent at least 5.3 percent of global petrochemical output and 36 percent of Middle Eastern production once those projects become online. The Oil Ministry has set targets for annual production of 11.5 million tpa of ethylene, 11.5 million tpa of polymer and 3.4 million tpa of urea, with a target of becoming the world’s leading producer of methanol with 7.5 million tpa of methanol capacity, which represents 18 percent of global capacity.^[8]

[edit] Research & development

NIPC is investing more on its R&D activities: this includes carrying out joint research projects with local institutions and universities; systematic link with local and foreign research centers; and design and operation of pilot plants for research purposes.^[4]

[edit] NIPC affiliate companies

Company	Location	Year founded	Employees[9][10]	Production[11][12][13]	Costs[14]	Remarks
Khorasan Petrochemical Co.	Khorasan	1996		fertilizers including urea, ammonia and crystal melamine		privatized co.
Tabriz Petrochemical Co.	Tabriz	1989	978	petrochemicals including ethylene and propylene	new projects: $35 million
Isfahan Petrochemical Co.	Isfahan					privatized co.
Arak Petrochemical Co.	Arak	1987	1,898	petrochemicals including ethylene and polyethylene		Privatized co. Affiliate companies: Bakhtar[15] - Andimeshk, Chahar Mahal Bakhtiari, Gachsaran, Hamedan, Kermanshah, Kordestan, Lorestan, Mahabad, Mamasani, Miandoab, Kavian, Dehdasht.[16]
Kharg Petrochemical Co.	Kharg					privatized co.
Shiraz Petrochemical Co.	Shiraz	1959	2,261	fertilizers including urea, ammonia and methanol		affiliate: Kermanshah petrochemical co.
Razi Petrochemical Co.	near Bandar Imam and Petzone	1968	2,100	fertilizers including ammonia, urea, phosphoric acid and sulphuric acid		Linked to Iran's nuclear program.[17] Privatized co.
Orumiyeh Petrochemical Co.	Orumiyeh	1995		petrochemicals including crystal melamine, ammonium sulphate and ammonium carbonate		privatized co.
Bandar Imam Petrochemical Co. (formerly "Iran Japan Petrochemical Co.")	Bandar Imam (Petzone)	1973		production and marketing of fuel and petrochemicals including aromatics, polymers and chemicals		affiliates: Ab Niroo, Basparan, Faravaresh, Kharazmi, Kimia.
NIPC International Co.
Petrochemical Commercial Co. (PCC)				sales of petrochemical products in the international markets as well as supplying Iran’s petrochemical downstream industries		subsidiaries in England, Germany (Intra-Chem Trading Co.), China, Singapore, India, U.A.E, South Korea and Turkey.
Bu-Ali Sina	Bandar Imam (Petzone)			benzene, paraxylene, orthoxylene, light ends, raffinate, LPG, pentene, heavy aromatics and naphtha		one of the biggest petrochemical plant in Iran.
Arvand Project	Bandar Imam (Petzone)	2010		300,000 tons of polyvinyl chloride (PVC), 660,000 tons of caustic soda, 340,000 tons of vinyl chloride and 890,000 tons of ethylene dichloride,[18] color alkali (2.834 million tpy)	$1.612 billion	8th olefin project - under implementation (2009).
Amir Kabir Project	Bandar Imam (Petzone)	1998	700	petrochemicals including heavy polyethylene (300K tpy), ethylene, propylene	new projects: $309 million	6th olefin project. Privatized co.
Shahid Tondguyan Petrochemical Co.	Bandar Imam (Petzone)	1998		PTA, PET-F (bottle grade), PET-G (fiber grade), PET (staple grade), PET (POY grade)
Khuzestan Petrochemical Co.	Bandar Imam (Petzone)	1997		liquid epoxy resin, solid epoxy resin, polycarbonates
Non-Basic Services Co.				services
Fajr Petrochemical Co. (Phase. 1)	Bandar Imam (Petzone)	1999		electricity, steam, nitrogen, oxygene, air, aragon, various waters		utilities required by the process plants in the Petzone.
Mobin Centralized Utility	Assaluyeh (PSEEZ)	2000		electricity, steam, nitrogen, oxygene, air, various waters	$359 million	utilities required by the process plants in the PSEEZ.
Kermanshah Petrochemical Co.	Kermanshah	1986		amonia, urea
Bisootun	Bisootun in Kermanshah	1999		LAB, HAB
Jam Petrochemical Complex	Assaluyeh (PSEEZ)			etylene: 1.320 million metric tpy to be increased to 4.2 million in few years, butadiene (115K tpy)	new projects: $148 million	10th olefin. World's largest ethylene unit. Privatized co. Certification: ISO-9001:2000, OHSAS-18001:1999, ISO-14001:2004, IMS.
Pardis Petrochemical Complex	Assaluyeh (PSEEZ)	2000 (1st phase)		urea and ammonia (1.755 million tpy)	$210 million
Zagros Petrochemical Complex	Assaluyeh (PSEEZ)	2004		methanol (1.650 million tpy)	$341 million	privatized co.
Pars Petrochemical Complex	Assaluyeh (PSEEZ)	1998		include ethylene benzene and styrene monomer (1.245 million tpy)	$535 million
Mehr Petrochemical Plant	Assaluyeh (PSEEZ)			petrochemicals including HDPE (300K tpy)	$231 million	partner: Japan.
Morvarid Petrochemical Plant				(544K tpy)	$422 million	privatized co.
Marun Petrochemical Complex	Bandar Imam (Petzone)			petrochemicals including low density polyethylene and olefin		affiliate: Laleh (LDPE project) - under implementation
Arya Sasol Polymer Co.	Assaluyeh (PSEEZ)	2009		400,000 tons of ethylene, 90,000 tons of C3 cut, 300,000 tons of medium and heavy polyethylene, and 300,000 tons of light polyethylene	$3.5 billion	9th olefin. Partner: South Africa (Sasol). Privatized co.
Nouri (Borzouyeh) Petrochemical Complex	Assaluyeh (PSEEZ)	1999	380	4.5 million tons of petrochemicals, including benzene, liquefied petroleum gas, raffinate, heavy aromatics (2.5 million tpy), orthoxylene and paraxylene		world’s largest aromatics producing complex.[19]
Fanavaran Petrochemical Co.	Bandar Imam (Petzone)	1998		1 million tons of methanol per year, 140,000 tons of carbon		privatized. Methanol to project [MTP] - vinyl acetate monomer project [VAM].
Abadan Petrochemical Co.	Abadan	1966		PVC, caustic soda, DDB		privatized co.
Polica Nowin Industrial Polymers Co.	Karaj	2003		pipe, soft granule, joints & fittings, mixed powder		privatized co.
Farabi Petrochemical Co.	Bandar Imam (Petzone)	1973		dioctyle phetalat (DOP), phthalic anhydride (PA)		privatized co.
Iran-Carbon	Ahwaz	1974		industrial coke		privatized co. Certification: ISO-14001: 2004, ISO-9001: 2000.
Petrochemical Development & Management Co.				services

[edit] See also

• Iranian Oil Bourse - trading in petrochemical products
• Ministry of Petroleum of Iran
• National Iranian Oil Company
• The Industrial Corridor of Asalouyeh
• Marun petrochemical complex
• Privatization in Iran
• List of Iranian Research Centers (Polymers)

[edit] References

[edit] External links

• Official NIPC's Website
• NIPC affiliated companies - interactive map
• Iran Petrochemicals Report Q2 2009
• Overview of Petrochemical Industry in Iran
• New Petrochemical Plants Due in 2010
• List of NIPC's current projects (2009)