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Sustainable Feedstock Supply, Top Priority for Iran Petchem Units, Says Deputy Oil Minister

Sustainable Feedstock Supply, Top Priority for Iran Petchem Units, Says Deputy Oil Minister
(Monday, August 5, 2024) 01:11

TEHRAN (NIPNA) -- Morteza Shahmirzaei, Deputy Oil Minister and CEO of the National Petrochemical Company (NPC), emphasized the critical importance of a stable feedstock supply for petrochemical units, declaring it a top priority for the Ministry of Oil.

Speaking at the inauguration of the 15th Iran Petrochemical Forum (IPF), Shahmirzaei noted that last year, Iran exported 30 million tonnes of petrochemical products and projected the industry’s real production to reach 80 million tonnes by the end of 2024.

In his remarks, Shahmirzaei expressed gratitude to the national oil, gas, and refining companies for their collaboration with the petrochemical industry, which has alleviated concerns regarding feedstock supply. He underscored that securing a stable feedstock is vital for the industry’s operations and growth.

Highlighting Iran's leading position in global oil and gas reserves, Shahmirzaei called for continued advancements towards renewable energy and the reduction of fossil fuel consumption, urging policymakers to facilitate and remove obstacles to further develop the petrochemical sector. He noted the recent launch of six petrochemical projects within the past month and a half, with an additional 15 projects expected to come online by the end of the year.

Shahmirzaei also mentioned the signing of investment agreements worth approximately $6.5 billion by petrochemical holdings in the upstream oil industry to secure a stable feedstock supply. Although this is not a primary priority, it reflects the industry's commitment to national development and value chain completion.

For the future, Shahmirzaei stressed the need to create a conducive environment for growth and development to prevent youth emigration and ensure prosperous futures, with the petrochemical industry playing a crucial role due to its diverse needs and contributions.

Currently, around 130 petrochemical projects are under development in Iran, requiring over $100 billion in investment. Shahmirzaei pointed out that significant discounts are now available for petrochemical units investing at least 40% of their annual profits in development, with up to 30% discount on gas feedstock and 17% on liquid feedstock, depending on the location and type of product.

He emphasized the importance of efficient human resource management and the need for workers in the petrochemical sector to be well-versed in global technologies. Shahmirzaei announced the unveiling of a locally produced catalyst stamp, marking a significant milestone in the domestication of oil industry catalysts.

In closing, Shahmirzaei reiterated the vital role of the petrochemical industry in job creation and economic growth, calling for collective efforts from the government, NPC, private sector, and investors to overcome development challenges. He highlighted ongoing development in regions such as Assaluyeh, Kangan, Deyr, Siraf, and Parsian Energy-Intensive Zone, aiming to maximize the use of national infrastructure and opportunities.

The 15th IPF, hosted by the NPC, is held on August 4-5, 2024, at the IRIB Conference Center, focusing on "Clean Technology."

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