Two new oil products, namely Propylene and Normal Hexane, are going to be offered at Iran Energy Exchange (IRENEX) for the first time next week, IRNA reported on Monday, quoting the managing director of IRENEX.
After the offerings of propylene and normal hexane products at IRENEX, the country’s demand will be met through domestic resources,” Seyed Ali Hosseini said.
According to the official, Shazand’s Emam Khomeini Oil Refinery which is the current supplier of the mentioned products has committed to offering 80 percent of its annual output, which is 40,000 tons and 60,000 tons of propylene and normal hexane, respectively, at IRENEX on a monthly basis.
Later Kermanshah and Abadan refineries will join Emam Khomeini Refinery to supply their products for offering at IRENEX.
Normal hexane is used as a solvent in the petrochemical and lubrication industries and propylene is commonly used as a feedstock for petrochemical plants, Hosseini said.
Since the U.S. withdrew from Iran’s nuclear pact in May 2018, vowing to drive Iran's oil exports down to zero, the Islamic Republic has been taking various measures to counter U.S. actions and to lessen its economy’s reliance on oil.
In this regard, Iranian think-tanks and energy experts have been repeatedly stating that the country should increase its refining capacity in order to make up for the reductions in crude oil sales by exporting oil products.
Therefore, in the past few months, the National Iranian Oil Company (NIOC) and its subsidiaries have been constantly offering various oil products at IRENEX.
NIOC has managed to sell millions of dollars of oil products via IRENEX over the past two years.