Addressing the Elite and Expert Symposium on the Challenges of
Feedstock Pricing in the Petrochemical Industry, Morteza Shahmirzaei called for
upstream sectors to prioritize domestic feedstock supply before export to
ensure sustainable operations at appropriate pricing.
He highlighted the importance of utilizing all available capacities to
achieve a leap in production.
The official reported that the implementation of approximately 130
petrochemical projects, valued at around $100 billion, has commenced, with
about 70 of these projects progressing satisfactorily. However, continuous
efforts are required to overcome development obstacles and accelerate project
execution.
In his remarks, Shahmirzaei noted the readiness of key hubs in
Asaluyeh, Mahshahr, the Parsian Energy Region, Lamerd, Dayyer, Kangan, and
Siraf to attract new investments. Investors will benefit from special legal
supports and incentives as part of the government’s strategic plans.
He paid tribute to the martyrs of the state, including Martyr Ebrahim
Raeisi, underscoring the petrochemical industry's resolve to bolster the
foundations of the Islamic Republic of Iran, in alignment with the principles
of the Islamic Revolution.
Discussing feedstock pricing challenges, Shahmirzaei pointed to rising
domestic consumption, lack of strategic focus, absence of comprehensive
governance for feedstock allocation and distribution from the Supreme Energy
Council and the Ministry of Petroleum, and energy imbalances as critical
issues.
He called for alignment and cooperation to secure sustainable
feedstock supplies at reasonable prices.
Shahmirzaei proposed revising pricing by incorporating the average gas
prices of neighboring countries' industries and suggested forming a specialized
committee to periodically update feedstock pricing formulas based on current
conditions.
He also stressed the importance of energy management and optimal
resource use to alleviate existing imbalances, ensuring more feedstock
availability for the industry, with significant collaboration from
petrochemical holdings.
Highlighting the need to move away from crude sales towards producing
final products with higher added value, Shahmirzaei noted that this shift
aligns with the Supreme Leader's emphasis on reducing crude sales. He urged the
industry to focus on value chain completion as a strategic priority.
The NPC CEO underscored the goal of a new structural transformation in
the petrochemical sector, leveraging existing experiences for comprehensive
governance and regulation.
He advocated for the adoption of renewable energy sources and
innovative technologies to transform energy supply in the petrochemical
industry, promoting balanced development.
Shahmirzaei mentioned ongoing efforts to capture flare gas with all
stakeholders' cooperation, enhancing feedstock supply for petrochemical plants.
He indicated that associated gases in the East and West Karun regions are being
collected, and NGLs 3200 and 3100, along with the Bid Boland Gas Refinery in
the Persian Gulf, will improve feedstock provision.
He announced that all existing flares will be extinguished soon, with
those in the petrochemical industry set to be out by the end of 2026, marking a
significant step towards environmental protection and production increase.
Shahmirzaei concluded by emphasizing the strategic priority of meeting
domestic demand before exports, expecting upstream sectors to align with this
approach.
He also praised the industry's efforts to localize and domesticate its
needs using advanced technologies, highlighting the National Petrochemical
Research and Technology Company’s achievements in technical knowledge sales and
catalyst production.
Last year’s credit supply of 800 trillion rials worth of petrochemical
products significantly transformed downstream industries, easing their
procurement processes. Shahmirzaei noted that the establishment of over ten
specialized chemical parks by petrochemical holdings is underway to facilitate
value chain completion and ensure balanced industry development.
The symposium on the challenges of feedstock pricing in the
petrochemical industry was organized by Imam Sadiq University and held on
Thursday, June 20.