NPC has decided to expand the capacity of its inland ethylene pipeline from 1.5m tonne/year to 2.8m tonne/year. The 2,163km pipeline, already under construction, will stretch from Assaluyeh in south of Iran to north western inland regions of the country. It will result in creation of new ethylene derivative petrochemical complexes in the cities of Gachsaran, Khoramabad, Kermanshah, Sanandaj and Mahabad. The expansion in the capacity, will allow NPC to build more ethylene derivative plants en route. In a meeting on 20 September, the Iranian cabinet instructed the Petroleum Ministry to build five more complexes in Andimeshk, Dehdasht, Hamedan, Chaharmahal-va-Bakhtiyari and Miyandoab. The contracts for the five initial complexes have already been awarded. The construction of the pipeline will aid the economic development of the western inland regions of Iran. The pipeline and the ethylene derivative petrochemical complexes which will be built on its route will help spread economic development throughout the regions. Moreover, they will create thousands of jobs opportunities.



Bakhtar Petrochemical Co. is assigned the task of managing the development of the West Ethylene Pipeline and its petrochemical complexes. It is a private joint stock holding company whose shareholders include: NPC (30%), Petroleum Ministry Pension Fund (20%), Arak Petrochemical Co. (10%), Esfahan Petrochemical Co. (5%), Bank Melli Investment Co. (5%), Social Security Organization Investment Co. (5%), National Pension Funds Investment Co. (5%), Ghadir Investment Co. (5%), Petrochemical Industries Investment Co. (5%), Modabber Investment Co. (5%), Iran Industrial Development Investment Co. (2.5%) and Rena Investment Co. (2.5%).

Work is going on unabated for the construction of the inland ethylene pipeline. Implementation work has begun on the fifth section of the pipeline. Pipe installation work is expected to be completed at section four of the line. Meanwhile, contractors have been selected for the 5th, 6th, 7th and 8th sections. Welding work is in progress on the 1st, 2nd and 3rd sections. Implementation work is also proceeding on the 4th section which is around 70% complete. The pipeline will carry ethylene to the provinces and will result in the creation of 10 ethylene derivative petrochemical complexes in several cities along its course. The complexes will be built in the cities of Gachsaran, Khoramabad, Kermanshah, Sanandaj, Mahabad, Andimeshk, Dehdasht, Hamedan, Boroojen and Miyandoab.




The required ethylene feedstock for the complexes that will be developed along the pipeline will be supplied by Kavian (No. 11 Olefin) and Arvand (No. 8 Olefin) Petrochemical Companies.

Kavian or Olefin No. 11 consists of two large olefin plants each with a capacity of 1,200,000 tonne/year. Covering an area of 45 hectares, No. 11 Olefin will be built at Pars Special Economic/Energy Zone in Assaluyeh on the northern coast of the Persian Gulf. A consortium of Linde of Germany, Sazeh of Iran and Hyundai of South Korea has won the engineering, procurement, construction and commissioning (EPCC) contract for the facilities. The contract covers provision of license, basic and detailed engineering, supply of equipment, construction, precommissioning, commissioning, start-up and performance tests. 1,600,000 tonne/year of ethane as feedstock will be sourced from phases 4, 5, 9 and 10 of the South Pars Gas field for each plant. All the required utilities will be supplied at the battery limits of the plants from the nearby Mobin second centralized UT complex. Kavian Petrochemical Co. is responsible for implementing the projects. No. 11 Olefin is owned by NPC (17.7%), Bakhtar (49.8%), Gachsaran (6.5%), Lorestan (6.5%), Kermanshah Polymer (6.5%), Kordestan (6.5%) and Mahabad (6.5%).



Arvand Petrochemical Co. or Olefin No. 8 will provide part of the ethylene feedstock for the petrochemical plants that will be built in Iran's western provinces. Arvand Petrochemical Co. awarded the contract for its 1,000,000 tonne/year ethylene plant to Petrochemical Industries Design and Engineering Company (PIDEC) of Iran. The plant will be built at the Petrochemical Special Economic Zone (Petzone) in Bandar Imam, on the northern coast of the Persian Gulf. The engineering, procurement, construction and commissioning (EPCC) contract covers provision of license, basic and detailed engineering, supply of equipment, construction, pre-commissioning, start-up and performance tests. ABB Lummus of the Netherlands will provide know-how, basic engineering & technical support and assistance during execution of the project. The plant will consume 1,300,000 tonne/year of ethane as feedstock which will be sourced from Bid Boland II Gas refinery. Olefin No. 8 will provide part of the ethylene feedstock for the petrochemical plants that will be built in Iran's western provinces. The remaining ethylene will be used in Arvand downstream plants. Arvand Petrochemical Company is responsible for implementing and operating the plant.





Kermanshah Polymer Company will produce 300,000 tonne/year of high-density polyethylene (hdPE) with different grades. It will be based on the Basell technology advanced catalysts. Kermanshah Polymer Company will consume 305,000 tonne/year of ethylene and 5,000 tonne/tear of butene-1 as feed. The latter will be supplied by Mahabad Petrochemical Co. The EPCC contract for the facility has been awarded to a consortium of UHDE of Germany and Sazeh of Iran. It covers provision of license, basic and detailed engineering, procurement & supply of equipment, construction, precommissioning, commissioning, start-up and test-runs. The plant is wholly owned by Bakhtar Petrochemical Co.



Lorestan Petrochemical Co. will consist of a 300,000 tonne/year swing linear low-density polyethylene/high-density polyethylene (lldPE/hdPE) plant and a 30,000 tonne/year butene-1 units. A consortium of Tecnimont of Italy and Nargan of Iran will build the plant. The contract calls for the supply of process technologies, engineering equipment and materials, technical assistance during construction, commissioning and start-up. Nargan will supply part of the detailed engineering and locally made materials and equipment. The lldPE/hdPE facility will be based on Basell Spherilene technology and the butene-1 technology will be provided by Axens of France. Lorestan Petrochemical Company will consume 324,000 tonne/year of ethylene. The facility is 100% owned by Bakhtar and will be built in an area of 128 hectares.



Kordestan plant will produce 300,000 tonne/year of low density polyethylene (ldPE) in various grades for domestic consumption and export. The plant will be based on Basell Polyolefin Lupotech Technology. It will be located at Sanandaj, Kordestan province, northwest of Iran. A consortium of Tecnimont of Italy & PIDEC of Iran have been awarded the engineering, procurement, construction and commissioning (EPCC) contract to construct the facility. The contract covers grant of license, basic and detailed engineering, supply of equipment and materials, construction, erection, pre-commissioning, commissioning, start-up and performance tests. The plant will consume 303,000 tonne/year of ethylene as feed, which will be supplied by the 11th olefin plant through the West Ethylene Pipeline. It will also need 1,000 tonne/year of propylene which will be sourced locally. Utilities, including power, water and steam will be supplied by the utilities plant of Kordestan petrochemical complex. Kordestan Petrochemical Company, which is 100% owned by Bakhtar, is implementing and will operate the facility.





Lying on an area of 202 hectares, Mahabad Petrochemical Co. will consist of a 300,000 tonne/year swing linear low-density polyethylene/high-density polyethylene (lldPE/hdPE) plant and a 30,000 tonne/year butene-1 unit. A consortium of Tecnimont of Italy and Nargan of Iran will contract the plants. The lldPE/hdPE facility will be based on Basell Spherilene technology and the butene-1 technology will be provided by Axens of France. The contract calls for the supply of process technologies, engineering equipment and materials, technical assistance during construction, commissioning and start-up. Nargan will supply part of the detailed engineering and locally made materials and equipment. Mahabad plant will consume 324,000 tonne/year of ethylene. It is entirely owned by Bakhtar.



Gachsaran complex is planned to produce 500,000 tonne/year of monethylene glycol (MEG), 50,000 tonne/year of diethylene glycol (DEG), 3,500 tonne/year of triethylene glycol (TEG). It will also yield 100,000 tonnes of high purity ethylene oxide (EO) per annum. Output from the plant will be used mainly in downstream units to be set up in the same location next to the ethylene glycol/ ethylene oxide facilities. The contract for Gachsaran project has been awarded to a consortium of Mitsui Engineering & Shipbuilding Co. (M.E.S.) of Japan and Petrochemical Industries Design & Engineering Co. (PIDEC) of Iran. It calls for the provision of license, basic and detailed engineering, procurement and supply of equipment, erection, construction, pre-commissioning, commissioning, start-up and performance tests. The plant will use the Shell Technology. Located near the city of Gachsaran in Kohgiloyeh-va-Boirahmad Province, Gachsaran covers an area of 160 hectares where the main process plant takes up 30 hectares of the total space. It is 100% owned by Bakhtar. The plant's feedstock includes 328,000 tonne/year of ethylene to be supplied from the West Ethylene Pipeline and 368,000 tonne/year of Oxygen to be supplied by Gachsaran complex.







Five new derivatives complexes to be built along the West Ethylene Pipeline Trunk:


Dehdasht Petrochemical Co. will be built in the city of Dehdasht, Kohgiloyeh-va-Boyerahmad Province, southwest of Iran. It is slated to produce 250,000 tonne/year of high-density polyethylene (hdPE). The facility is 40% owned by Bakhtar and 60% by Nargan Industries. It will use as feed 245,000 tonne/year of ethylene and 5,000 tonne/year of butene-1.

Andimeshk Petrochemical Company Andimeshk Petrochemical Co. will be built in the city of Andimeshk, Khuzestan Province, southwest of Iran. It is slated to yield 300,000 tonne/year of high-density polyethylene (hdPE). The facility is 100% owned by Bakhtar. It will use as feed 305,000 tonne/year of ethylene and 7,000 tonne/year of butene-1.

This complex will be constructed in the city of Boroojen, Charmahal-va-Bakhtiari Province. It is slated to yield 300,000 tonne/year of linear low-density polyethylene/high-density polyethylene (lldPE/hdPE). The facility is 100% owned by Bakhtar. Its feedstock includes 295,000 tonne/year of ethylene.

The plant to be built in Hamedan, west of Iran, is scheduled to produce 140,000 tonne/year of vinyl-acetate monomer (VAM) and 45,000 tonne/year of ethylene-vinyl acetate (EVA). Its feedstock consists of 84,000 tonne/year of ethylene and 97,000 tonne/year of acetic acid. The latter will be soured from the NPC subsidiary Fanavaran Petrochemical Company in Petrochemical Special Economic Zone.



Miyandoab complex will produce 300,000 tonne/year of suspension grade polyvinyl chloride (PVC) and 190,000 tonne/year of caustic soda. It will consume 144,000 tonne/year of ethylene and 360,000 tonne/year of solar salt. It is wholly owned by Bakhtar.