Speaking at a meeting with Deputy President Mohammadreza Aref,
Abbaszadeh revealed that $12 billion has already been spent, with an average
progress rate of 50%, and another $12 billion in funding is forthcoming.
With 70 production plants and three utility facilities, the petrochemical
sector is a significant pillar of Iran's economy. “Currently, 85% of the
petrochemical industry is concentrated within holding companies, primarily
affiliated with national pension funds, while 15% belongs to the private
sector,” Abbaszadeh said.
Focus on Value Chains
The Seventh Development Plan shifts focus from merely increasing
production capacity to enhancing value chains. Abbaszadeh noted that previous
strategies prioritized production growth, but the new plan targets reaching a
capacity of 131.5 million tons by 2028 in key areas like methanol,
polyethylene, and ethylene. “Though this approach adds complexity, it is
crucial for achieving higher value-added production,” he stated.
The NPC is prioritizing projects and monitoring progress to align with
the dual goals of increasing capacity and completing value chains. Financial
challenges remain a significant hurdle, but Abbaszadeh emphasized efforts to
secure funding, including collaborations for collecting associated gas and
investing in small gas fields to stabilize feedstock supplies.
Energy Optimization and Renewable Initiatives
Addressing feedstock shortages, Abbaszadeh highlighted initiatives to
optimize energy consumption. The industry has partnered with local communities
in colder regions, promoting energy-efficient equipment and culture to redirect
domestic gas savings to petrochemical feedstock.
Furthermore, many petrochemical companies have entered renewable
energy ventures. For instance, Kaveh Methanol has signed contracts to develop
800 MW of solar power and 500 MW of wind power to meet its electricity needs.
Regional Development and Export Growth
The NPC is also advancing a nationwide zoning plan to attract
investment tailored to each province’s resources, water availability, and
existing industries. This strategy aims to bolster downstream petrochemical
activities and stimulate local economies.
On the export front, Abbaszadeh reported $10 billion in petrochemical
exports over the past nine months, projecting this figure to reach $13 billion
by year-end. Domestic downstream industries have also been supported with $10
billion worth of feedstock for products like polymers, footwear, textiles, and
detergents. Efforts are underway to expand the customer base beyond traditional
markets with the help of petrochemical holding companies.
By prioritizing high-value projects and exploring renewable energy
opportunities, Iran’s petrochemical sector is poised to sustain its pivotal
role in the economy despite financial and operational challenges.