The inaugural meeting of the “Seventh Development Plan Petrochemical
Task Force” was held with the participation of Hassan Abbaszadeh, Deputy Oil
Minister and CEO of the National Petrochemical Company (NPC).
The task force reviewed the legal frameworks, current projects, and
performance of petrochemical complexes to align with the plan’s objectives. A
key target includes increasing petrochemical production capacity to over 130
million tons by the end of the plan, contingent on sufficient feedstock
availability.
Key Development Targets
The plan sets ambitious goals, including:
- Achieving
a production capacity of 11.6 million tons of propylene and its
derivatives.
- Developing
700,000 tons of methanol-based downstream products.
- Expanding
non-polyethylene ethylene derivatives to 3.3 million tons.
- Boosting
polyethylene production to 8.6 million tons.
- Enhancing
downstream aromatics production to 3 million tons.
The plan also emphasizes the development of value-added downstream
petrochemical industries, which are pivotal for diversifying the industry and
boosting economic resilience.
Policy Revisions and Strategic Initiatives
Among the measures outlined, the plan calls for a review of licenses
issued for methanol, urea, and polyethylene projects that remain incomplete by
the end of 2024. It also proposes prioritizing unsold petrochemical products
for domestic downstream industries through long-term contracts, fostering local
value chain growth.
Additionally, a reduction in feedstock discounts is proposed,
conditional on petrochemical companies allocating 40% of their annual net
profits to capital reserves. The plan also incorporates feedstock price
adjustments under the Targeted Subsidies Law, facilitated through treasury
bonds.
Energy Efficiency and Structural Reforms
The plan underscores energy optimization and administrative
restructuring within the petrochemical sector. The Ministry of Oil is tasked
with implementing these policies in collaboration with other government bodies.
The Seventh Development Plan aims to position Iran’s petrochemical
industry as a driver of sustainable economic growth while addressing global
energy trends and domestic resource optimization.