NPC has also laid out long-term forecasts, including a
targeted $40 billion investment under the Eighth Development Plan, geared
toward maximizing value creation and completing the value chain. These
projections, tailored to Iran’s economic context and the constraints imposed by
international sanctions, reflect the industry’s resilience and its track record
of steady progress.
Strengthening Regional and Global Market Share
Iran currently holds approximately 2.8% of the global
petrochemical market and nearly 28% of the regional capacity. The Seventh Plan
aims to further elevate these figures through continued capacity expansion, but
achieving such growth will require an annual investment of at least $7
billion—a significant funding demand that calls for close government-industry
collaboration.
To attract investment, NPC has introduced new financing
packages, hoping to draw interest from investors and capital market players.
The government’s ambitious economic and export growth targets—8% and 23% per
year respectively—are aligned with the goals set for the petrochemical sector.
Diversifying Products and Extending the Value Chain
NPC aims to increase capacity to 103 million tons by the end
of 2024, with the completion of around 60 petrochemical projects anticipated to
add another 35 million tons. The industry’s ultimate goal is to reach 132
million tons annually by the end of the Seventh Plan and 186 million tons by
the close of the Eighth Plan. To maintain a competitive edge in regional and
global markets, NPC will focus on diversifying product lines and enhancing the
value chain. For instance, NPC plans to raise methanol production from 16
million to 34 million tons and increase ammonia output from 7 million to 10
million tons over the next decade.
Collaborative Solutions for Sustainable Development
According to NPC Acting Director Hassan Abbaszadeh, private
sector cooperation will be critical to achieve the industry’s expansion goals,
with stable feedstock supply emerging as a key focus area. Recent agreements
between the National Iranian Oil Company (NIOC) and petrochemical holdings aim
to support sustainable feedstock supplies, while also reducing gas flaring.
The government’s policy framework emphasizes privatization
and the use of alternative resources, such as unconventional water supplies for
industrial purposes. Several initiatives, including phased feedstock pricing
adjustments, tax incentives, and prioritized gas allocation, are intended to
address potential limitations in the petrochemical industry’s future growth
trajectory.
Overcoming Operational Hurdles and Regulatory Challenges
The industry faces various challenges, including financial
constraints, logistical bottlenecks, and regulatory limitations. Abbaszadeh
underscored the importance of enhanced private-public sector synergy,
particularly for projects in the early stages that are essential for advancing
Iran’s petrochemical capacity.
"As a bridge between the private sector and government,
NPC is committed to maintaining the industry’s stability. With the successful
launch of projects under the Seventh Plan, we expect to increase our capacity
to 132 million tons per year by 2028,” Abbaszadeh said.
In light of broader policy reforms, NPC and related entities
within the Ministry of Oil are actively working to streamline development
initiatives, bolster financing, and mitigate restrictions, positioning the
industry for steady growth in the decade ahead.