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NPC Chairman: Iran Petchem Industry Focused on Enhanced Quality

NPC Chairman: Iran Petchem Industry Focused on Enhanced Quality
(Wednesday, October 30, 2024) 12:57

TEHRAN (NIPNA) - The chairman of Iran's National Petrochemical Company (NPC) emphasized a strategic shift in the seventh national development plan to prioritize the petrochemical value chain, rather than solely boosting production capacity.

“Our focus is no longer just on expanding capacity but on creating high-value petrochemical products across five targeted chains,” NPC Chairman Hassan Abbaszadeh said Tuesday.

Speaking with NIPNA News, Abbaszadeh highlighted that the petrochemical industry achieved an annual growth rate of 8% under the sixth development plan, reaching a production capacity of 96 million tons.

The NPC is set to maintain this growth rate in the upcoming seventh plan, with a targeted capacity increase to 132 million tons per year.

The NPC’s development blueprint also leverages Iran’s diverse feedstock sources. Unlike the Mahshahr region, which relies primarily on crude oil and derivatives, the energy-abundant South Pars region taps natural gas, a resource that fuels Iran's growing methanol, urea, ammonia, and ethylene production.

Maximizing Economic Impact with Efficient Gas Use

The petrochemical sector’s contribution to the Iranian economy continues to expand, Abbaszadeh noted, with the sector utilizing around 9% of the nation’s natural gas. “While residential and commercial sectors consume 46% of produced gas and power plants 31%, neither is highly efficient,” he remarked. The petrochemical sector, by contrast, converts 4.5% of gas consumption into high-value feedstock, generating around $23 billion in sales last year. Of this, $13 billion was earned through exports, while $10 billion supplied domestic demand.

Moreover, NPC’s development plan includes $24 billion for 61 new petrochemical projects. Approximately half of the required capital has been secured, with projects showing an average progress rate of 60%.

Projected Increase in Value-Added Output

Under the eighth development plan, set to launch post-2030, Iran aims to attract an additional $40 billion in investment across 48 petrochemical projects, significantly enhancing the industry’s output capacity. Abbaszadeh underscored that by the end of the ten-year horizon, the NPC expects to process an equivalent of 2.6 million barrels of crude oil daily into value-added products.

Currently, out of the 72 active petrochemical complexes in Iran, 24 are located within the South Pars Special Economic Energy Zone, contributing about 50% of the national petrochemical capacity.

In line with the country’s export strategy, NPC’s 15 active jetties in South Pars facilitated the export of 21 million tons of petrochemical products last year. By completing the petrochemical value chain, the Ministry of Petroleum and NPC aim to boost overall efficiency and maximize economic returns for the sector.

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