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Challenges of Private Sector in Petchem Development: A Focus for the Minister of Oil

Challenges of Private Sector in Petchem Development: A Focus for the Minister of Oil
(Sunday, October 6, 2024) 17:18

TEHRAN (NIPNA) – The caretaker of the National Petrochemical Company has emphasized that addressing the challenges faced by the private sector in the development of the petrochemical industry is a key concern for the Minister of Oil. Currently, 78% of the installed capacity in the petrochemical industry is being utilized for production, and increasing production levels requires collaboration between the public and private sectors.

 

 

Hassan Abbaszadeh made these remarks during a consultation and synergy meeting between the public and private sectors in the petrochemical industry, attended by CEOs of petrochemical holding companies and industry stakeholders, on Saturday, October 14.

He noted that one of the Minister’s priorities, alongside achieving the goals of the Seventh Development Plan, is to resolve the challenges facing the private sector, expedite project implementation, and increase production capacity in petrochemical units.

Abbaszadeh pointed out the important role of the private sector in the development of the petrochemical industry, stating that production is currently carried out by private entities and holding companies, with the National Petrochemical Company providing comprehensive support for private sector investments.

He highlighted the investment of holding companies in the upstream sector, mentioning that such investments enhance productivity and specialization in various areas.

According to Abbaszadeh, the installed capacity of the petrochemical industry currently stands at nearly 100 million tons, and the private sector has played a significant role in this growth.

He emphasized the need for unified policies and synergy among holding companies and organizations to achieve the objectives of the Seventh Development Plan, noting that 78% of the installed capacity in the petrochemical industry is in use, and increasing production levels requires collaboration among all key stakeholders in both the public and private sectors.

Abbaszadeh added that the National Petrochemical Company serves as a bridge between the private sector and governance, expressing optimism about the petrochemical industry’s stable condition. He hopes that with the commissioning of petrochemical projects under the Seventh Development Plan, the industry's capacity will increase to 131 million tons by the year 2028.

During the meeting, CEOs of holding companies and the Secretary General of the Employers' Association of the Petrochemical Industry emphasized the importance of coordination and alignment in achieving the goals of the Seventh Development Plan, addressing production obstacles, and improving the infrastructure for executing petrochemical projects.

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