Babak Pourkia, CEO of Shiraz Petrochemical, has said the development projects that are being implemented in the near future are nitric acid and ammonium nitrate projects with a capacity of 750 tons per day of nitric acid and 600 tons per day of ammonium nitrate. The projects will be implemented as soon as possible. Regarding the investment of these projects, a series of negotiations have been held so that the subsidiary and other departments can participate in the investment. The financing, constructing, and operating of these development projects will be profitable for the company, and it is hoped that the studies can be completed and reach the implementation stage as soon as possible.
Regarding the rate of return on investment of the aforementioned development projects, Porkia stated the Internal rate of return (IRR) was approximately 20% in less than 5 years, and it has very good profitability. The company currently has an ammonia inventory in the complex of approximately 260 to 270 tons of excess ammonia per day, and its goal is to convert this excess ammonia into nitric acid and ammonium nitrate.
The CEO of Shiraz Petrochemical Company also noted that nitric acid is a product that is widely consumed in the country and is currently facing a shortage. Therefore, it’s hoped that by implementing this plan, the company will be able to both compensate for the country’s shortage and provide the ammonium nitrate unit with feed for its development plan with 600 tons per day, which is approximately 200,000 tons of ammonium nitrate annually.
Regarding the diversification of urea products in this complex, the CEO of Shiraz Petrochemical said the company has conducted studies on the diversification of urea products, including a series of coatings for urea fertilizer that can be absorbed more easily in the soil. In this regard, Kermanshah Petrochemical is practically one step ahead of Shiraz Petrochemical Company in the Parsian Oil and Gas Development Group (POGDC). Shiraz Petrochemical Company has also conducted a series of studies on the diversification of products. Shiraz Petrochemical also produces methanol, and the first methanol unit in the country was put into operation at Shiraz Petrochemical in 1990. Therefore, it can produce combined products in the future that are fed with ammonia and methanol.
Regarding Iran being the benchmark for urea pricing in the world, the CEO of Shiraz Petrochemical said cohesion and convergence among Iranian urea producers is needed. He said some urea producers outside the Parsian Oil and Gas Development Group must join this convergence. Pourkia emphasized if cohesion is established among Iranian urea producers, better activities in terms of pricing and exports in terms of markets can be done in added value for the holdings.
Source: Shiraz petrochemical Department of Public & International Affairs
