US shale gas no menace to Iran's petchem industry

TEHRAN, Feb. 19 (MNA) – Deputy Iranian oil minister said American shale gas cannot be deemed a threat to development of Iran’s petrochemical industry for at least a decade.

On dangers and shale gas expansion in the US for development of Iranian petchem industry, Marzieh Shah-Daei said “for the coming 10 years, shale gas will not pose threats to the Iranian market thanks to the careful planning made by National Petrochemical Company (NPC).”

NPC managing director stressed that in the long run however, a broader perspective will be required towards increased production and supply of shale gas and its effect on evolution of the country’s petrochemical industry.

“In view of available 10-year plans in the Iranian industry, majoriy of investments will be made on the basis of gas feedstock,” she continued.

The official reiterarted that gas feedstocks used in the Iranian petchem industry are currently less expensive than shale gas of US and unconventional gas produced from shale rock fragments presently poses no hazard to the industry.

The US has recently lifted gas output from unconventional resources and is allocating an increasing amount of the fresh feedstock to existing industries as well as constructing new petrochemical complexes. On the other hand, with development of Panama Canal, America seeks to export gas and even ethane to European and Asian states as evidenced by the fact that displacement time for transfer of gas from the US to Europe and Asia has been sliced to about 25 days.

In time with the rise in US gas output, the North American country has managed to uplift production and supply of various petchem materials. The US is anticipated to turn into a major exporter of methanol once its largest methanol complex comes on stream.

Additionally, with implementation of new projects, polyethylene output capacity in the US will soon climb by up to 40 per cent as well as the Americans are mulling over deployment of propylene and polypropylene to global markets.

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News Code 123664

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