Speaking on the sidelines of the 7th Iran Expo, Alimorad said the
recently approved cabinet directive, aimed at resolving the country’s feedstock
imbalance, has laid the groundwork for investment partnerships between
petrochemical holdings and the National Iranian Oil Company (NIOC). These
agreements are expected to be finalized by mid-year.
He highlighted NPC’s target to increase Iran’s nominal petrochemical
production capacity from 96 million to 106 million tons by year-end, with
several new projects underway, including two power-related ones. However, he
warned that only around 75% of the current capacity is being utilized.
To address this gap, Alimorad emphasized the need for increased
production rather than merely expanding capacity. He also called for broader
public participation in the petrochemical sector to mobilize dormant
capital—both in rials and foreign currency—for industrial investment and
economic growth.
Shift from Polyolefins to Engineering Polymers
Alimorad stressed that NPC is steering new investment away from
saturated upstream products such as methanol and polyethylene. “Further
investment in polyolefins like polyethylene is no longer justifiable,” he said.
“Our focus must shift to engineering polymers and advanced materials to
complete the value chain.”
He added that strengthening downstream production and integrating the
methanol value chain is vital to curbing raw methanol exports. “Greater
collaboration among methanol producers will help Iran reclaim pricing power in
key markets like China,” he noted.