Hassan Abbaszadeh, Deputy Petroleum Minister and CEO of the National
Petrochemical Company (NPC), emphasized the strategic importance of methanol
chain development within Petrofarhang. “With a projected annual production
capacity of 6.6 million tonnes of methanol within the next two years,
Petrofarhang is poised to become the country’s largest methanol producer.
Strategic planning to complete the value chain is imperative,” Abbaszadeh said.
Key Downstream Projects Approved
During the meeting, officials approved three key downstream projects,
including acetic acid, vinyl acetate monomer, and synthetic ethanol production
at Shimi Lavan Chemical Company. Additionally, projects for methanol-to-olefins
(MTO), polypropylene, acrylic acid, and superabsorbent polymers at Mehtab
Parsian Petrochemical, as well as polyoxymethylene (POM) production at Arya
Petrochemical, received approvals or extensions.
“These projects align with the country’s broader economic policies and
must reach operational status within the next four years,” Abbaszadeh stated,
reaffirming NPC’s commitment to supporting Petrofarhang’s initiatives.
Supporting Localization and Energy Security
The Deputy Minister also highlighted the importance of domestic
manufacturing in the petrochemical sector, stressing Petrofarhang’s role in
supporting knowledge-based companies and localization efforts. “Our focus is on
indigenizing process-specific equipment and catalysts required for methanol
plants. In line with the Ministry of Petroleum’s policies, we are backing
Petrofarhang’s initiative to domestically produce the hydrogenation catalyst
for Marjan Petrochemical,” Abbaszadeh added.
To facilitate this, the government has committed to enabling Marjan
Petrochemical to inject its ethylene output into the West Ethylene Pipeline
until its in-house catalyst production is fully operational.
Expansion Despite Gas Supply Challenges
Javad Zarehpour, CEO of Petrofarhang, reported that despite a
three-month gas supply disruption affecting Sabalan and Kimia Pars Middle East
petrochemical plants, the company achieved a 41% increase in production and a
30% rise in methanol exports last year. “We have fulfilled our commitment to
foreign exchange revenue generation while doubling Marjan Petrochemical’s
profitability,” Zarehpour said.
However, he warned that a cumulative 220-day gas supply cut over the
past year has significantly impacted operations. “Despite being one of the
largest payers of overdue debts to the National Iranian Gas Company, we call on
the Ministry of Petroleum to address this issue and prevent further
disruptions, as it directly affects our ability to support the Teachers’
Pension Fund, which owns this holding.”
Future Developments and Diversification Plans
Zarehpour announced that Phase 2 of Sabalan Petrochemical is scheduled
for completion by September 2025, while Siraf Energy Petrochemical will come
online by September 2026, adding a combined 3.3 million tonnes per year of
methanol capacity. The holding is also progressing with three downstream
projects to enhance product diversification.
Beyond petrochemicals, Petrofarhang is investing in non-industrial
operations, with plans to complete the nine-story, four-star Sepehr Hotel in
Shirinu, Bushehr Province, within 20 months.
Zarehpour also revealed that Petrofarhang is entering the upstream
sector, finalizing agreements to participate in two gas fields. “With the
country’s ongoing gas imbalances, we see it as our national duty to engage in
upstream development, making us the first oil and gas holding in Iran to do
so,” he said.
Renewable Energy Investments
Petrofarhang is also expanding into the power sector, having already
supplied over 35 megawatts of electricity to the national grid through two
power plants built by Mafna Company. The company plans to construct three solar
power plants and invest in renewable energy, targeting a total of 400 megawatts
of solar power capacity over the next four years.
Focus on Corporate Social Responsibility
Petrofarhang and NPC signed an agreement to allocate the holding’s
corporate social responsibility (CSR) budget to the education sector. “We
strongly advocate for prioritizing education in our CSR efforts and urge NPC to
facilitate and accelerate this initiative,” Zarehpour concluded.
Senior executives from Sepehr Energy Holding, Sabalan Petrochemical,
Siraf Energy Petrochemical, Marjan Petrochemical, Arya Petrochemical, and Shimi
Lavan Chemical also attended the meeting, presenting their concerns and
development plans.