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Iran Pushes Petchem Value Chain Expansion to Curb Crude Sales

Iran Pushes Petchem Value Chain Expansion to Curb Crude Sales
(Saturday, February 15, 2025) 14:15

ASALUYEH (NIPNA) – Iran is intensifying efforts to expand its petrochemical value chain and reduce crude sales as part of its long-term economic strategy, a senior oil official said on Wednesday.

Hassan Abbaszadeh, Iran’s deputy oil minister and CEO of the National Petrochemical Company (NPC), told reporters that increasing value-added production aligns with national policies and is a key objective for the 14th government.

“The petrochemical industry is the most crucial link in preventing crude exports,” Abbaszadeh said, according to state media Nipna. “By the end of this administration, we aim to fully integrate the value chain.”

His remarks came ahead of a regional development council meeting in Asaluyeh, where he attended the inauguration of the Pad Jam Polymer project, a subsidiary of Jam Petrochemical Company. The $620 million investment converts semi-finished petrochemical materials into high-value products. The first phase, completed at a cost of over $400 million, is operational, while the second phase—set to produce rubber—will be completed by 2026.

Petrochemical Companies to Aid Gas Field Development

Abbaszadeh noted that petrochemical firms are also playing a role in gas field development, citing efforts to capture flared gas to secure feedstock. “Flare gas recovery is underway in both western and eastern Karoun, and companies are also working on similar projects in Asaluyeh,” he said.

He acknowledged feedstock limitations for petrochemical plants due to inefficient domestic gas consumption and said companies have now stepped in to support gas field expansion projects to ensure stable supplies.

Iran has been ramping up investments in petrochemical projects to enhance revenue streams and reduce dependence on raw material exports amid international sanctions.


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