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Deputy Oil Minister: Energy Imbalance Resolution Requires Collective Effort

Deputy Oil Minister: Energy Imbalance Resolution Requires Collective Effort
(Wednesday, February 12, 2025) 16:05

TEHRAN (NIPNA) – Hassan Abbaszadeh, Deputy Minister of Petroleum and CEO of the National Petrochemical Company (NPC), emphasized that optimizing energy consumption requires the active participation of all stakeholders.

In a ceremony held on Sunday, February 9, marking the draw for the "10% Energy Consumption Reduction Campaign," Abbaszadeh highlighted the importance of addressing energy inefficiencies.

"Currently, the country's petrochemical production capacity stands at 96 million tons, with about 23% of the installed capacity remaining idle, despite an investment of $18 billion," he said.

Abbaszadeh outlined that the petrochemical production capacity is expected to increase to 131 million tons by the end of Iran's 7th Development Plan. He explained that the production of new petrochemical projects would significantly contribute to the industry’s growth.

He also noted that specialized committees have been established to monitor and ensure feedstock supply for the petrochemical industry. These committees are exploring various solutions, including facilitating the participation of petrochemical companies in upstream field development.

Abbaszadeh further emphasized the importance of utilizing renewable energy sources within the petrochemical industry, highlighting ongoing initiatives such as the launch of methanol plants powered by solar energy. He mentioned that the Kavian Methanol plant would soon open one of its solar farms, with additional projects planned in Kerman, Yazd, Isfahan, and Khorasan provinces. Wind power projects in Sistan and Baluchestan are also under construction, aiming to produce 500 MW of wind energy and 800 MW from solar energy in the first phase.

He stated that any gas savings would directly contribute to meeting the energy needs of the petrochemical industry. “Adjusting consumption behavior is essential so that gas supplies can be directed to petrochemical industries. Along with this, the petrochemical industry is working on shutting down flares and collecting flare gas,” he added.

Abbaszadeh highlighted recent achievements, noting that the investment of $1.1 billion in the Bid Boland gas processing plant would lead to the shutdown of 55 flares, saving approximately 17 million cubic meters of gas. Additionally, 14 more flares are set to be shut down by the end of this year.

The NGL3100 Dehloran flare gas collection project is also nearing completion, Abbaszadeh revealed. He emphasized that under the 7th Development Plan, gas flaring reduction projects would be prioritized for investment.

"Optimizing gas consumption is critical not only for households but also for ensuring that the petrochemical industry receives the feedstock it needs for production," he concluded, also stressing the importance of fostering a culture of energy conservation, particularly in greenhouse and poultry sectors.

Abbaszadeh noted that studies have shown significant potential for gas savings in these sectors, and petrochemical companies are ready to assist in improving energy efficiency in these industries.

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