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Petrochemical Industry Welcomes Foreign Investment, but Doesn't Wait: CEO

Petrochemical Industry Welcomes Foreign Investment, but Doesn't Wait: CEO
(Tuesday, January 16, 2024) 17:07

TEHRAN (NIPNA) -- Deputy Minister of Petroleum and CEO of the National Petrochemical Company (NPC) announced that the Value Chain Completion Program will be presented in the next month, considering the existing upstream feedstock. The implementation of this program aims to elevate Iran's petrochemical industry to its rightful position in the global market.

As reported by NIPNA, Morteza Shahmirzaei, in an event celebrating the 50th anniversary of Bandar Imam Petrochemical Company, extended congratulations to engineers, specialists, and especially the workers of the company. He stated that with the capabilities of these experts, Bandar Imam Petrochemical is heading toward completing the value chain and diversifying production.

The Deputy Minister of Petroleum emphasized that Iran's petrochemical industry will become one of the world's most flourishing industries in the future. He highlighted the country's essential elements for developing this industry, including abundant feedstock, skilled human resources, and access to water resources and coastlines.

Shahmirzaei stated that the 20-year growth of the petrochemical industry, starting from the implementation of the first petrochemical project in Iran in 1958, was initially modest. The industry had a capacity of about 3 million tons, producing 8 to 9 product types with complete reliance on design, equipment supply, and commissioning before the Islamic Revolution.

Referring to the fact that global fossil fuel carrier consumption will be limited by 2050, Shahmirzaei highlighted the need to redirect these resources, considering Iran's oil and gas reserves, toward the development of the petrochemical industry. He mentioned that currently, over 550 grades of petrochemical products are produced in the country, and by the end of the Eighth Development Plan, Iran's annual petrochemical industry capacity will surpass 180 million tons.

Regarding foreign investment in the petrochemical industry, Shahmirzaei expressed support and encouragement but made it clear that Iran would not wait for foreign companies to develop this industry. He emphasized that the industry's expansion would be achieved using domestic capabilities.

The NPC CEO, discussing the industry's resilience despite sanctions, noted that 95% of future industries would be dependent on petrochemical products. Therefore, the development of this industry is of great importance.

Shahmirzaei revealed that a comprehensive value chain completion document was unveiled by NPC in 2022, providing a roadmap for investors. According to the promises made in late 2021, with the efforts of domestic companies, the reliance on catalysts will be eliminated in the thirteenth government.

He continued, saying that domestic experts have the capability to provide equipment for the petrochemical industry in various areas, particularly compressors, valves, pumps, and various types of turbines. Iran is moving towards self-sufficiency in this regard.

The Deputy Minister of Petroleum concluded by emphasizing the increase in investments to gain technical knowledge in the petrochemical industry with the goal of completing the industry's value chain. He mentioned that 21 strategic products were presented to the holdings by the National Petrochemical Company last year, bringing the industry closer to the end of the value chain.

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