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Iran Petchem Sector Attracts $87b in Investment, Eyes Global Partnerships Despite Sanctions

Iran Petchem Sector Attracts $87b in Investment, Eyes Global Partnerships Despite Sanctions
(Wednesday, May 28, 2025) 10:59

TEHRAN (NIPNA) – Iran's National Petrochemical Company (NPC) has attracted $87 billion in cumulative investments in the country’s petrochemical sector, of which $26.3 billion has come from foreign sources, a senior official said on Tuesday.

Hamidreza Ajami, NPC’s Director of Investment, said the country’s current production capacity is nearing 100 million tonnes annually, a figure expected to rise as part of the government’s seventh development plan, which targets a capacity of 131 million tonnes.

The plan aims to reduce raw material exports, boost downstream industries, attract domestic and international investment, and enhance productivity—ultimately pushing the sector towards an annual growth rate of 8%.

“The scale of domestic funding from institutions such as the National Development Fund and central bank remains limited,” Ajami said. “To maintain competitiveness and avoid falling behind globally, we must utilize foreign financing despite associated risks and restrictions.”

Currently, 142 petrochemical projects worth over $102 billion—with a combined production capacity exceeding 132 million tonnes per year—are under development across the country. About 24 billion dollars in new capital is needed to complete projects in the seventh development plan, Ajami said, noting that around $12 billion has already been spent on partially completed projects.

The NPC is also preparing for future phases. The eighth development plan, scheduled to begin in 2026, requires an additional $10 billion in investment, bringing the total near-term funding requirement to $22 billion.

To attract new investors, Ajami said NPC will expand its presence in petrochemical-focused exhibitions and conferences, including Iran’s Oil, Gas, and Petrochemical Show and the Iran Petrochemical Forum (IPF). A second dedicated petrochemical investment conference is also being planned.

Ajami emphasized the importance of international engagement despite years of sanctions. “Although sanctions have hampered financial cooperation with Western firms, strong partnerships continue with China, Russia, CIS countries, the Indian subcontinent, Latin America, and Africa,” he said.

His comments echo remarks made earlier by NPC Managing Director Hassan Abbaszadeh, who highlighted the potential of African markets for Iranian petrochemical exports during a planning session for the upcoming Iran-Africa Economic Cooperation Summit in May.

In an effort to enhance transparency and reduce administrative burdens, NPC has made investment procedures fully digital via an integrated licensing platform, with materials published in multiple languages—including Persian, Arabic, English, Chinese, and Russian.

From March 2024 to March 2025, the NPC approved 17 new projects and extended permits for 39 others. The investment office has also signed cooperation agreements with several free trade and special economic zones, including Parsian, Qeshm, and Chabahar, to streamline access for potential investors.

These initiatives, combined with efforts to reduce feedstock exports and increase value-added production, demonstrate Iran’s ambition to position its petrochemical industry as a globally competitive player, despite enduring geopolitical headwinds.

 


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