Iran Petrochemical Industries Company executive director Abdel Hoseyn Bayat has criticized shortcomings in the country’s energy sector, telling journalists, "Currently the installed capacity at the petrochemical units has come close to 54.5 million tons per year, while the production program is 46 million tons per year. Four factors have created this unused capacity. Twenty-five percent of this unused capacity is due to a shortage of feed, twenty-five percent is due to technological failures, thirty percent is due to defective equipment manufacture and twenty percent is related to other factors."
Bayat’s statements have raised serious issues, such as how will Iran’s petrochemical industry compete with a rival like Saudi Arabia Saudi Arabia Basic Industries Corp. (SABIC) with its annual production rate of 65 million tons, Donya-ye Eqtesad newspaper reported.
Bayat added, "In the area of technological failures we are trying to get help from the license holders so we can solve this problem. We are trying to solve the problems in this sector with new orders. We are all seeking to correct prices and the nation's structure by downsizing but based on the Oil Law propagated by the president of the republic, the National Petrochemical Company is one of the four main companies in the Ministry of Oil."
By. Joao Peixe, Deputy Editor OilPrice.com
Joao is a writer for Oilprice.com