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New Version of Petchem Value Chain Development Document Prepared

New Version of Petchem Value Chain Development Document Prepared
(Wednesday, February 28, 2024) 15:38

TEHRAN (NIPNA) -- In a statement, the Deputy Minister of Petroleum and CEO of the National Petrochemical Company (NPC) announced that a new version of the document for the development and completion of the petrochemical value chain, along with additional elements including strategic macro approaches, updated statistics on the petrochemical market, and more, is in the final stages of design.

Morteza Shahmirzaei, CEO of the National Petrochemical Company, stated in an interview: "The National Petrochemical Company, in line with identifying investment opportunities for the country's required projects and introducing them, as well as facilitating or implementing these opportunities in the future, has undertaken the study of the petrochemical value chain and provided entry opportunities for investors."

He added, "The document for the development and completion of the petrochemical value chain, which includes the what and why of the objectives and directions of the National Petrochemical Company to increase value-added and self-sufficiency in the downstream product supply chain, was unveiled by the honorable Minister of Petroleum at the fourteenth International Petrochemical Symposium in the current year."

The Deputy Minister of Petroleum stated: "The new version of this document, along with additional elements including strategic macro approaches, updated statistics on the petrochemical market, and more, is in the final stages of design."

He continued, "By implementing value chain projects, we will witness a reduction in the import of required petrochemical products, self-sufficiency in supplying the domestic market, increased resilience of the industry's value chain, growth in downstream petrochemical industries, increased value-added, higher income for the private and public sectors, reduced raw and semi-finished product sales, reduced currency outflow in the country, significant job creation in domestic industries, diversification of the petrochemical industry product basket, and diversification of export market destinations."

Shahmirzaei stated that "the strategy of the National Petrochemical Company for this matter is studying the value chain and formulating priority plans, providing feedstock for product production, facilitating technology acquisition, improving the business environment for product production, and attracting investment," adding that "the most important action for the development of petrochemical complexes producing imported products within the scope of the duties and authorities of the National Petrochemical Company is attracting investment."

He added: "To attract investment, the National Petrochemical Company will continuously monitor the required products and propose value chain plans to investors, including major petrochemical holdings, and will follow up on their implementation."

The Deputy Minister of Petroleum emphasized: "The National Petrochemical Company is considered a development organization according to Article 5 of the Law on Removing Production Barriers dated May 10, 2015; a development that is essentially a form of role-playing in the fourfold aspects of policymaking, planning, regulation, and governance in the governance domain."

He continued: "This development includes a range of support and facilitation activities to prevent market failure, and the National Petrochemical Company, under its fundamental objectives, has outlined two guiding and managing development tasks in line with its development duties, which include defining value chain plans in line with these objectives."

The CEO of the National Petrochemical Company stated: "Among the 20 investment packages formulated under the name of value chain plans, the majority of the plans have been approved by various investors," adding: "So far, 27 preliminary agreements have been issued by the Ministry of Oil, confirmed by the National Petrochemical Company, for various investors."

He added: "According to the schedule announced by the investors, all projects with preliminary agreements will be operational during the Seventh and Eighth Development Plans due to the need to launch upstream projects providing feedstock and the intrinsic nature of long-term construction of petrochemical projects."

Shahmirzaei announced the total investment cost for implementing petrochemical value chain plans as equivalent to $4.2 billion and said: "This level of investment will result in an annual income of $4.4 billion, which will be provided by investors. However, it is necessary to introduce these resources to the Development Fund and other financial institutions for facilitation based on prioritization."

He continued: "Each investor, during the stages of obtaining licenses from various authorities for the construction of petrochemical complexes, separately uploads cultural and social attachments to the National License System."

The Deputy Minister of Petroleum admitted: "The National Petrochemical Company, in order to achieve the country's major goals and missions, in line with realizing national interests and overcoming the constraints in supplying the country's required currency resulting from international sanctions, aims to ensure the continuous return and injection of currency generated from petrochemical exports into the country's economic cycle."

He added: "In recent years, the National Petrochemical Company has received annual currency plans from companies, and after reviewing the currency income and expenditures, their commitments are declared to the Central Bank, and the petrochemical industry's currency performance is monitored in a way that in previous years, the petrochemical industry has had a very good record in returning export currency and has been one of the most important sources of currency for the Central Bank."

He added: "In addition to registering hedging import orders, which are done in the National License System with the approval of relevant managements in the National Petrochemical Company, issues such as payment of facilities and facility interest, expenses related to insurance, transportation, price difference of export quotas with the registered price in the Islamic Republic Customs, and technical services such as foreign engineering services requiring currency are reviewed in the planning and development management, and after preparing the relevant forms and obtaining financial and technical approval, they are sent to the Currency Return Task Force for final approval and after confirmation, they are communicated to the relevant banks and stakeholders."

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