Petrochemicals came to help optimize power plant fuel consumption

According to Energy Press, citing the National Petrochemical Industries Company, Hassan Abbaszadeh said today (Sunday, February 16) at the signing ceremony of a cooperation agreement to reduce fuel consumption intensity and increase energy efficiency in power plants with investment from the petrochemical industry on the sidelines of the “Energy Cycle” exhibition and specialized event: “The production capacity of this industry has crossed the 100 million tons mark and, according to the Seventh Development Plan, should reach about 131 million tons by the end of 1407 (2020).” He considered one of the main challenges of production in industries to be the shortage of feedstock and said: “Despite the country’s vast energy resources, at some points it is not possible to fully utilize the installed capacities, and one of the important reasons for this is the suboptimal consumption of energy resources.”

The need for acceleration in the development of renewable energies

The CEO of the National Petrochemical Company, referring to the country’s energy supply structure, added: The electricity production portfolio in Iran is mostly based on hydrocarbon resources, and renewable energies do not yet have a high share in this portfolio, however, it is hoped that the development of these resources will accelerate in the future.

Abbaszadeh, stating that in the petrochemical industry, the issue of feedstock is of particular importance, said: In some sectors, especially in the field of electricity production, fuels are used that can create more value in the petrochemical industry’s value chain. Allocating feedstock to the petrochemical industry can lead to economic prosperity, increase foreign exchange earnings, and create jobs, provided that energy consumption in other sectors is managed optimally.

Referring to global trends in the refining industry, he stated: Refineries around the world have moved towards producing petrochemical-based products, so that in some regions up to 70 percent of refinery output is petrochemical products.

More value added by producing petrochemical products in refineries

Stating that in Iranian refineries, only about 3 to 5 percent of incoming crude oil is converted into petrochemical products, while this figure in the region is about 45 percent, the Deputy Minister of Oil continued: Increasing this share can create significant added value.

Emphasizing that developing petrochemical refineries and upgrading existing refineries is one of the basic strategies of the Ministry of Oil to increase added value, Abbaszadeh stated: Energy distribution in the country is mostly based on natural gas, and gas consumption in the domestic sector and some non-standard uses puts significant pressure on the energy network.