MAPNA Group’s Board of Directors has passed a resolution approving the corporation’s engagement in construction of petrochemical utility and power projects in Parsian Energy Intensive Industrial Special Economic Zone (PSEZ).
The resolution follows the signing of a memorandum of understanding between CEO of MAPNA Oil & Gas Division and Managing Director of Parsian Economic Zone in July 2017.
MAPNA Group has been granted agreement in principle and license for GTX (gas to petrochemical products) fuel and feedstock by National Petrochemical Company. Upon completion, MAPNA Group’s independent GTX plant will have an annual production capacity of 1.650 million tons for methanol products, 645 thousand tons for olefin products, 200 thousand tons for polyethylene products, and 465 thousand tons for polypropylene products.
As part of the MoU signed with Parsian Economic Zone, MAPNA will construct power plants with an overall capacity of 5000 megawatts in three phases to supply electricity for energy intensive industries in the zone.
Initially, MAPNA Group will undertake construction of a 50-MW power plant in Parsian Economic Zone.
Surplus capacity from MAPNA Group’s 500-MW Asaluyeh Power Plant, currently under conversion to a combined cycle, is earmarked for transfer to PSEZ, to be consumed by MAPNA Group’s petrochemical utility, and other energy-intensive industries via a power purchase agreement (PPA) contract.
Long-term plans are to install power generation plants up to 5000 MWs of capacity in Parsian Zone if MAPNA Group manages to conclude power purchase agreements with PSEZ industries.
A dedicated power distribution system for Parsian Economic Zone has also been envisaged by MAPNA Group in case approved by the investors.
A joint working group including executives of MAPNA Group and Parsian Economic Zone will work on these power projects.
Located west of Hormozgan Province on the northern coast of the Persian Gulf, Parsian Energy Intensive Industrial Special Economic Zone has an annual potential capacity to produce 18 million tons of petrochemical products, 4 million tons of steel, 600 thousand tons of aluminium, and 3 million tons of alumina.
Parsian Energy Intensive Industrial Special Economic Zone serves as a major development hub for Iranian economy, supplying energy demands by various production sectors and generating foreign exchange revenues for the country.