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NPC Committed to Addressing Key Petchem Downstream Challenges

NPC Committed to Addressing Key Petchem Downstream Challenges
(Wednesday, November 13, 2024) 10:41

TEHRAN (NIPNA) – Hassan Abbaszadeh, Chairman of the National Petrochemical Company (NPC), reaffirmed the company’s commitment to systematically addressing the challenges facing the petrochemical value chain, particularly in downstream industries.

Speaking at a meeting with petrochemical associations, Abbaszadeh emphasized the importance of identifying and resolving issues in the downstream sector to enhance the overall petrochemical value chain.

The meeting, aimed at fostering collaboration and tackling challenges in the sector, focused on the need to develop downstream industries.

Abbaszadeh highlighted that the focus is no longer on expanding upstream petrochemical capacity or building large-scale complexes, but rather on advancing downstream industries. “Ensuring the supply of feedstock to downstream industries and implementing projects in the final stages of the petrochemical chain is critical for reducing imports of essential products,” he stated.

Abbaszadeh acknowledged the concerns of downstream industries, particularly regarding feedstock for polypropylene, PET, 2AEH, and PVC production.

He assured that effective measures are being pursued to address these concerns, including an increase in PVC production at the Abadan Petrochemical Complex by the end of this year.

The NPC chairman also emphasized the importance of private sector involvement in achieving the country’s 8% economic growth target, as urged by the Supreme Leader.

"The private sector is crucial for achieving this goal due to its ability to execute projects more rapidly," Abbaszadeh stated.

Addressing concerns about gas feedstock shortages, Abbaszadeh clarified that the limitations on gas supplies would not affect downstream industries. He explained that the restrictions apply mainly to methanol, urea, and ammonia plants, with only 9% of the country’s natural gas being utilized by the petrochemical sector.

He also noted that 46% of the sweet gas produced in Iran is consumed by residential and commercial users, while 30% is used by power plants with low efficiency.

To mitigate the impact of gas consumption increases during the colder months, Abbaszadeh outlined efforts to conserve gas usage, including eight gas-saving projects being implemented by the petrochemical industry.

One of these initiatives involves the Zagros Petrochemical Company investing approximately 2,000 billion rials in optimization measures, with negotiations already underway with the Ministry of Petroleum for a memorandum of understanding.

Abbaszadeh also highlighted ongoing projects focused on optimizing gas consumption in poultry farms in northern Iran and greenhouse projects in Gilan and Mazandaran provinces. These initiatives are part of the broader effort to optimize energy use across the petrochemical sector.

In terms of export strategy, Abbaszadeh stressed the need for value-added exports, urging that raw polymers should not be exported without further processing. “We must create facilities within the polymer industry that allow for the production of various grades to meet market demand,” he said.

Regarding the IranPlast International Exhibition, Abbaszadeh emphasized that NPC’s goal is not just to showcase products, but to focus on downstream industries and ensure their role is central to the event. He also announced the implementation of a national land-use plan focusing on the downstream petrochemical sector, which will identify and address the specific challenges of each province.

In conclusion, Abbaszadeh outlined key initiatives discussed during the meeting, including specialized meetings for each association, long-term management of petrochemical product pricing in the stock market, and support for the creation of a fund to support downstream petrochemical industries.

The NPC also plans to establish a polymer industry steering council to further enhance coordination and resolve issues in the sector.

The meeting concluded with an agreement to hold follow-up sessions every three months and to conduct specialized meetings regularly to address and resolve ongoing challenges.

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