Conference Report of Argus LPG and petrochemical products

Conference Report of Argus LPG and petrochemical products

In collaboration with Argus, one of the most prominent and respected independent media organizations in providing consultancy in the field of energy commodities, the second “Argus Iran Commodity Week” was held under sponsorship of Persian Gulf Petrochemical Industry Commercial Company (PGPICC) on 18th-19th of April, 2017 in Tehran, Iran. Since Argus is one of the most important institutes in terms of market intelligence and consultancy in the field of energy commodities and has developed very strong business relationship with market players, it made this conference very attractive for current market stakeholders such as buyers, producers and also brokers. In addition, Joint Comprehensive Plan of Action (aka Iran’s Nuclear Deal) and Iran's re-entry into international market, compelled market activists to put great emphasis on this conference. The conference focused on three main topics: bitumen, base oil, LPG and petrochemical products. In LPG and petrochemical products sector which can be considered as a focal point in this conference, several speakers from international and domestic companies had attended; to name a few; National Iranian Oil Company (NIOC), Iranian Gas Commercial Company (IGCC), National Petrochemical Company (NPC), Persian Gulf Petrochemical Industry Commercial Company, World LPG Association (WLPGA) and Indian Oil Corporation. On the first day of conference, speakers from various domestic and foreign companies assessed the overall situation of the world's oil and gas industry as well as the evaluating Iran's re-entry into international energy commodities after the lifting of international sanctions. On the second day, the key topic focused on LPG and petrochemical products. In this regards Dr. S.A.Hosseini as a representative of PGPICC, Mr. Moeini in charge of condensate and LPG export at NIOC, Mr. James Rockall, the Manager of the WLPGA discussed the LPG market trend for the past few years and also lead the talks towards the outlook of supply and demand for near future. During his speech, Dr. S.A.Hosseini stated the facts of current situation of Iranian and regional market as well as the capabilities of Persian Gulf Petrochemical Industries Company (PGPIC) and subsequently PGPICC as the trading arm for PGPIC. Moreover, Dr. Hosseini pointed out the projects under construction by PGPIC. He elaborated on the two mega projects of Persian Gulf Bid Boland gas refinery and NGL 3200 that will come into service in the year 2018. These two projects will add 2.7 million tons of LGP production capacity to PGPIC's product basket which makes the total LPG production on PGPIC into 6 million tons annually. Further in his discussion, he strongly pointed out to PGPIC’s plans to build downstream plants in order to convert LPG into more value-added products such as Propylene through PDH projects. As a final note, Dr. S.A. Hosseini confirmed that PGPIC is now currently able and willing to engage in long term LPG sale agreements such as “Off-Take” contracts with its customers.