Thirty percent physical progress of Alai Mehestan Petrochemical

<p style="text-align: left;">According to the public relations report of the Pension Fund, Savings and Welfare of Oil Industry Employees Abdul Hossein Bayat, Chairman of the Board of Directors of Oil Industry Pension Funds at the meeting of the Supreme Council of Projects, stating that the total progress (APC) of the Alai Mehestan Petrochemical Project until the end of May year 1422 is 33%, he said: three units (PDH), (pp) and utility unit of this complex are under construction with physical progress of 28, 27.7 and 35.4% respectively, the progress of joint activities between A unit in this project has reached about 88.7%.</p> <p style="text-align: left;">&nbsp;</p> <p style="text-align: left;">Bayat added: "Alai Mehestan petrochemical project has progressed by about 15% by the end of 1400 and by 30% by the end of 1401." It is expected that this project will reach 64% physical progress by the end of this year. He stated: The financing of the Alai Mehestan Petrochemical Project is provided through two parts, the shareholder's contribution and the facility, and until today the project is advanced with the shareholder's contribution, because the banks do not invest in projects that do not have a physical progress of less than 30%, therefore, from the second half of this year, we will witness We will attract bank facilities for the project, we are currently negotiating with Saderat, Trade and Mellat banks for this. Now the propane produced in the upstream sector is sold in raw form, in addition to the price issue, selling crude has the problem of transportation and sales restrictions, so if we can convert propane into propylene, we will see a higher added value.</p> <p style="text-align: left;">&nbsp;</p> <p style="text-align: left;">Pointing out that the technical know-how to convert propane to propylene in the Alai Mehestan Petrochemical PDH unit was already in the possession of two foreign companies, Bayat clarified: it was not possible to access the license of the PDH unit before for the country, but with the use of Iranian knowledge-based companies inside We were able to localize and complete the technical knowledge of the PDH1 unit in the Funds Economic Group. He clarified: After converting propane to propylene, in the next step, in the PP unit, propylene is converted to polypropylene, so that the added value of this product is almost twice as high as that of raw propane. Currently, each ton of propane is sold for about 600 dollars in the Persian Gulf market; But each ton of polypropylene is sold for more than 1,300 dollars, which we can offer both in the domestic market and in neighboring countries. The Chairman of the Board of Directors of the Oil Industry Pension Fund said: the feed for this petrochemical is provided by the Kangan Petrorefinery Company, 530,000 tons of propane from this refinery is consumed by Alai Mehestan Petrochemical, and the rest is consumed in the PDH2 unit of this petrochemical, which is under construction.</p>