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Petrochemicals: Vital for National Security and Economy

Petrochemicals: Vital for National Security and Economy
(Tuesday, June 27, 2023) 23:34

MASHAD (NIPNA) -- National Petrochemical Company's CEO and Deputy Minister of Petroleum emphasized the vital role of petrochemicals in enhancing the country's security and economy.

Speaking at the 33rd Summit of Petrochemical CEOs, Morteza Shahmirzai expressed the critical and impactful nature of petrochemicals in the development of the nation's economy, as well as its security and prestige.

Shahmirzai, addressing the significance and position of the petrochemical industry in the country's economy, stated that the suspension of production in a petrochemical unit for a short period of time could lead to the halt of various industries, illustrating the pivotal role of the petrochemical sector.

The CEO of the National Petrochemical Industries Company continued, highlighting the increasing importance and sensitivity of the petrochemical industry among other sectors. He emphasized the crucial and effective role of petrochemicals in bolstering the country's economy, security, and power.

Furthermore, Shahmirzai regarded the management of major issues as a serious matter and emphasized the need for a planned approach to minimize the flaring of gases, except in cases where process conditions prevent such actions.

Referring to the petrochemical industry as the frontrunner in implementing LNG projects, the Deputy Minister of Petroleum stated that although the establishment of LNG projects had long been part of the agenda, their implementation had been slow. However, today, petrochemical companies can play a more vibrant role in their swift execution by ensuring financial resources and proper management.

Shahmirzai highlighted the successful implementation of the flared gas collection project in the Karun region by the Persian Gulf Bidboland Gas Refinery, stating that it demonstrated the petrochemical industry's commitment to preventing resource wastage, reducing pollution, and preserving the environment for future generations.

Regarding the role of petrochemicals in generating foreign exchange for the country, particularly their impact during currency fluctuations, Shahmirzai stressed the need for increased collaboration among petrochemical companies in indigenous process localization, chemical materials, and the production of necessary goods and equipment.

He emphasized that petrochemicals have always been reliable allies in maintaining currency stability and balance, fulfilling their commitment to the highest standards.

The Deputy Minister of Petroleum acknowledged the resilience of some petrochemical units, particularly methanol units, in overcoming challenging times. He stated that the National Petrochemical Industries Company strives to accurately convey the concerns and challenges of companies regarding feedstock pricing and ancillary services to decision-makers, ensuring logical decisions are made.

Shahmirzai emphasized the importance of not neglecting the completion of the value chain as a primary objective for petrochemical industry development. He urged production companies to invest in initial capital in the construction sector to achieve complete indigenization in the petrochemical industry within the next five years.

Referring to the plans of the National Petrochemical Industries Company aligned with the completion of the value chain, Shahmirzai called on the holdings and investors to expedite the implementation of the 21 product projects defined by the company. The aim is to produce these strategic products as quickly as possible within the country.

Additionally, the Deputy Minister of Petroleum highlighted the necessity of preparing the required infrastructure for the implementation of the seventh and eighth development plans.

According to the CEO of the National Petrochemical Industries Company, the production capacity of the petrochemical industry is projected to reach 140 million tons annually by the end of the seventh development plan, including LNG projects.

The 32nd Petrochemical CEOs Summit, scheduled for two days (5th and 6th of Tir), serves as a platform for industry leaders to exchange insights, foster collaborations, and drive sustainable growth in Iran's vibrant petrochemical sector.

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