Petchem Industry Prioritizes Foreign Trade Expansion

Petchem Industry Prioritizes Foreign Trade Expansion
(Sunday, August 27, 2023) 22:44

TEHRAN (NIPNA) -- The CEO of the National Petrochemical Company (NPC) highlighted the expansion of diplomatic relations in the thirteenth government, stating that the NPC aims to enhance collaborations with neighboring and like-minded countries during this administration.

Substantial negotiations have been conducted with Russia, Uzbekistan, Armenia, India, Pakistan, Africa, and countries in the Far East, leading to an expansion of foreign collaborations in areas such as catalyst sales, chemical materials, technical and engineering services, and equipment supply, said Morteza Shahmirzai.

He extended congratulations on the occasion of the Government Week and paid tribute to the memory of martyrs Rajai and Bahonar.

He emphasized the importance of value chain development in the petrochemical industry for the country's economy. He asserted that the petrochemical industry brings value addition, revenue generation, employment opportunities, poverty alleviation, and the completion of various industrial chains to the nation through its development.

The NPC CEO underscored the need for the development of complementary industries, especially in the face of unjust sanctions against Iran.

Shahmirzai noted that the petrochemical industry symbolizes economic resilience and domestic economic growth in the realm of non-oil exports.

The CEO of the National Petrochemical Company referred to the expansion of international relations in the thirteenth government and stated that the company seeks to increase collaborations with neighboring and like-minded countries during this term. Extensive negotiations have taken place with Russia, Uzbekistan, Armenia, India, Pakistan, Africa, and countries in the Far East, leading to the expansion of Iran's foreign collaborations in the petrochemical industry, encompassing catalyst and chemical material sales, technical and engineering services, and equipment supply.

Shahmirzai regarded value chain completion planning as the most significant action in the thirteenth government, emphasizing that the National Petrochemical Company, as the industry's regulator and policymaker, has developed and conveyed a value chain development document in the petrochemical industry.

He stated, "In line with achieving this goal, the National Petrochemical Company introduces investment opportunities in the petrochemical value chain to increase value addition and income, reduce crude and semi-finished sales, address existing deficiencies in the country's value chain to reduce imports, achieve self-sufficiency in the domestic market, enhance resilience, reduce foreign exchange dependency, generate employment, diversify product portfolios, and consequently introduce export destinations to investors."

The CEO of the National Petrochemical Company continued, "Value chain projects in the form of 20 packages covering five propylene, methanol, ethylene, aromatic, and butylene chains have been presented with an annual nominal capacity of 3.8 million tons and an investment of $4.2 billion, capable of producing $4.4 billion worth of various downstream products annually."

Shahmirzai emphasized that value chain projects have been communicated to holding companies based on their access to required feedstock. Some of the holding companies have already taken steps towards investment in this area, resulting in the issuance of several preliminary agreements for value chain projects.

He highlighted the petrochemical industry as a prominent example of preventing crude sales, noting that the industry currently converts over 1 million barrels of hydrocarbon resources into valuable petrochemical products daily. In 1401, this sector contributed around $27 billion to the country's revenue.

Shahmirzai disclosed the opening of five petrochemical projects by the end of 1402, adding that the capacity of the petrochemical industry will increase by 2.5 million tons through new operationalization during the thirteenth government's term.

He reported that 85% of the export sales in 1400, equivalent to $12.7 billion, and 91% of the export sales in 1401, equivalent to $14.55 billion, were made by petrochemical production complexes through the NIMA currency platform.

Shahmirzai affirmed the National Petrochemical Company's alignment with national policy and maximum utilization of domestic capabilities. He stated that numerous actions have been taken within the company through collaboration with knowledge-based firms. As a result, 107 knowledge-based companies were identified in 1400, and 234 in 1401, for cooperation in the construction and implementation of equipment within the petrochemical industry.

The CEO of the National Petrochemical Company highlighted that over 85% of petrochemical catalysts are now localized. He further noted that the Petrochemical Research and Technology Company has committed to indigenous production of all required petrochemical catalysts by the end of the thirteenth government's term.

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