Iran Launches New Projects to Boost Downstream Petrochemical Industry

The National Petroleum and Chemical Company of Iran (NPC) announced that it will soon launch several new downstream petrochemical projects across the country. The plan, led by NPC CEO Hassan Abbaszadeh, aims to transform Iran's petrochemical industry from a major exporter of raw materials to a producer of high-value finished products.

Abbaszadeh reportedly unveiled the plan at the leadership changeover ceremony of the NPC's Downstream Industry Development Department last Saturday. He stressed that Iran mainly exports raw materials and semi-finished petrochemical products, which are then processed into final products by importing countries, accounting for most of the added value.

"We must use all available capacity to complete the value chain. By converting semi-finished products into final products, we can significantly increase the added value structurally and technologically," Abbaszadeh said.

The upcoming projects will take into account regional planning, existing infrastructure, and the availability of important resources such as raw materials and water. The core of NPC's strategy is to reduce the export of raw materials. Abbaszadeh called on the downstream industry development management department and other relevant departments to strengthen cooperation, cultivate complementary industries, improve the value chain, and ultimately produce finished products in Iran.

In addition, NIPC is committed to incorporating feedback from the downstream petrochemical industry into its development planning to ensure seamless operations and continued growth by addressing the industry's production and supply needs.

Speaking of the complexity of large petrochemical plants under an export-oriented strategy, Abbaszadeh acknowledged that there are many challenges in adjusting product grades to meet the diverse needs of downstream industries, and that flexibility and responsiveness to market demand need to be improved. It is important to strengthen cooperation between the Ministry of Industry, Mining and Trade and the downstream industry management department of NIPC.

"It is necessary to expand all-round cooperation with the Ministry of Industry to solve downstream industry problems through cooperation and interaction. Fortunately, the recent meeting with officials from the Ministry of Industry laid the foundation for this cooperation, and we are ready to strengthen cooperation to promote the development and improvement of the petrochemical industry."