From Maroon Petrochemical’s Failed Experience Downstream to the Mist of Oblivion on the Propylene Chain

According to Energy Press, Iran’s petrochemical industry is facing numerous challenges in the production chain and balanced development. In an interview with Energy Press, energy expert Mostafa Saeedi examined the reasons for petrochemical companies’ failure to enter downstream industries and the structural problems in the development of production chains, especially propylene. Emphasizing the need for petrochemical companies to focus on the production of raw materials and address the deficiencies of key chains, he suggested solutions to improve the situation of this industry.
No need for petrochemical companies to enter downstream industries
Saeedi, referring to the unsuccessful experiences of some petrochemical companies, such as Maroon Petrochemical, in investing in the downstream sector, explained that entering this field, which is mainly carried out by small and medium-sized enterprises with teams of 20 to 30 people, is harmful for petrochemical companies. “The main task of petrochemicals is to produce polymer base materials, and entering into activities that have been outsourced to the private sector can be detrimental,” he said. According to him, petrochemicals should focus on producing raw materials and refrain from investing in the production of final or semi-final products such as compounds and masterbatches, because these areas belong to other industries with different characteristics.
Lack of diversity in the petrochemical industry’s base products
According to Saeedi, one of the main challenges of Iran’s petrochemical industry is the lack of diversity in base products and the incompleteness of the propylene and aromatic chains. “While methanol production is in excess of demand, the propylene and aromatic chains, which have valuable products to feed downstream industries such as the automotive industry, are underdeveloped,” he said. This shortage has led to the need for downstream industries to obtain inputs from abroad, which has increased dependence on imports. Saeedi suggested that petrochemicals meet the needs of domestic industries by investing in the development of these chains.