Credit Sales Key to Petchem Growth, Says Deputy Petroleum Minister

Credit Sales Key to Petchem Growth, Says Deputy Petroleum Minister
(Tuesday, June 11, 2024) 14:24

TEHRAN, June 10 (NIPNA) - The credit-based sale of petrochemical products is the most effective strategy for boosting production in the petrochemical industry, according to Morteza Shahmirzaei, Deputy Petroleum Minister and CEO of the National Petrochemical Company (NPC).

Speaking at the inaugural National Conference on Credit Sales of Petrochemical Products, Shahmirzaei emphasized the critical role of stable raw material supply in achieving substantial production growth.

Shahmirzaei highlighted that the implementation of credit sales had addressed the liquidity shortage faced by downstream industries, catalyzing a significant transformation in their business operations. "In 2023, approximately 800 trillion rials ($80 billion) worth of petrochemical products were sold on credit," he noted.

He further stated that there was no shortage of petrochemical products last year; instead, downstream industries occasionally struggled to absorb the available supply.

Acknowledging the efforts of the petrochemical sector in facilitating credit sales, Shahmirzaei reported that in the first two months of this year, 140 trillion rials ($14 billion) worth of petrochemical products were offered in the capital market.

Calling credit sales an economic jihad, Shahmirzaei reiterated that sustained raw material supply to downstream units is essential for realizing true production leaps. The NPC is actively engaged in completing numerous petrochemical projects, with substantial investments aimed at their completion and productivity.

Shahmirzaei declared that 2024 would be a landmark year for the petrochemical industry, with over 15 projects set to commence operations, boosting the industry's installed capacity to over 102 million tons.

He also underscored the importance of ensuring a steady feedstock supply to petrochemical complexes to increase production. In alignment with localization efforts, over 80 environmental projects have been initiated within the industry.

Finally, Shahmirzaei affirmed the goal of fully localizing all petrochemical catalysts by the end of the 13th government in 2025, urging petrochemical companies to participate in the commercialization of these catalysts.

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