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Iran Petrochemical Industry Targets Growth Through Innovation

Iran Petrochemical Industry Targets Growth Through Innovation
(Tuesday, February 25, 2025) 12:19

TEHRAN (NIPNA) – Iran’s petrochemical sector can accelerate its development by embracing modern research management, cutting-edge technologies, and innovative structures, according to Hassan Abbaszadeh, Deputy Petroleum Minister and CEO of the National Petrochemical Company (NPC).

Speaking on Sunday at a specialized panel on the future of the petrochemical industry during the third Petrotech Conference, Abbaszadeh highlighted that Iran’s petrochemical production capacity has reached nearly 100 million metric tons. Around 60% of this output is dedicated to essential base products such as methanol, ammonia, ethylene, and other key chemicals.

Abbaszadeh acknowledged setbacks in propylene production but emphasized that completing the product’s value chain would enable the creation of high-value-added products, allowing both domestic supply and exports to international markets.

Highlighting the importance of technological advancement, Abbaszadeh noted that Iran’s Seventh Development Plan outlines a clear path for growth across various dimensions of the industry. He also stated that three utility complexes in the sector collectively generate around 4,000 megawatts of electricity, with surplus power fed into the national grid.

Currently, only 4% of Iran’s produced gas is used as feedstock in petrochemical facilities, Abbaszadeh said, underlining the need for better utilization of oil and gas reserves. He stressed diversifying feedstock sources, integrating renewable energy, and adopting modern technologies to achieve growth targets.

Private Sector Support Critical for Petrochemical Growth

In the same panel, Mohammad Reza Nematzadeh, a senior industry expert, emphasized the private sector’s capacity to drive transformation within the petrochemical industry. "Supporting private investments will pave the way for producing a wider range of petrochemical products," he said.

Nematzadeh also addressed concerns about feedstock shortages, asserting that with efficient use of hydrocarbon resources, Iran’s petrochemical plants could secure feedstock supplies for the next 50 years.

Parliament’s Commitment to Petrochemical Development

Mostafa Nakhaei, a member of Iran’s Parliamentary Energy Commission, reiterated the legislature’s support for the industry despite challenges such as sanctions and feedstock limitations. He called for increased global competitiveness and a stronger presence in international markets by leveraging advanced technologies to produce higher-value-added products.

The panel also featured insights from Dr. Maleki, a professor at Sharif University of Technology, and Sadegh Jokar, CEO of the Lorch Petrochemical Project, who shared their perspectives on the future of Iran’s petrochemical sector.


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