NPC: Sustainability of petrochemical industry hinges on innovation
The managing director of the National Petrochemical Company (NPC) believes that the sustainability of the petrochemical industry depends on innovation, describing it as a significant market for domestic manufacturers.
Speaking on Sunday, December 22, at the opening ceremony of the “PetroFan 1403” conference, Hassan Abbaszadeh noted that the petrochemical industry is a critical link in the oil value chain, deeply intertwined with technology.
“It is impossible to engage in this industry’s processes without access to the necessary technology,” he said.
Abbaszadeh explained that Iran’s petrochemical industry has reached middle age, adding, “Innovation is essential for our survival in this field. Many of the processes in the petrochemical industry are outdated and need to be modernized. We must focus on upgrading and improving these processes.”
Referring to the industry’s trade dynamics, Abbaszadeh stated, “The petrochemical industry exports approximately $15 billion worth of products annually, while importing goods and equipment costing around $2 billion. Of this, $700 million is spent by subsidiaries of the Persian Gulf Holding Company, presenting a significant opportunity for domestic production.”
The NPC head went on to say that, “Additionally, around $2 billion worth of petrochemical products not currently produced in the country are imported each year. A major reason for this is the lack of technical knowledge for producing these products.”
To address this issue, the NPC has introduced 20 value chain project packages. “These projects have been provided to petrochemical companies and investors and are underway. Some technical knowledge is being introduced for the first time, but there is still more work to be done,” Abbaszadeh said.
Highlighting the importance of localization in the petrochemical industry, the official noted, “To achieve this, the company has established a new management department focused on research, technology, and domestic production. This department identifies capable new technology-based firms (NTBFs) and connects them with petrochemical firms to reduce foreign currency outflow and strengthen local capabilities.”
Abbaszadeh also stressed the importance of collaboration among petrochemical holdings.
“We aim to increase cohesion and interaction among petrochemical holdings to optimize synergies within the industry,” he added.
Developing completing value chain
Abbaszadeh also on Saturday, December 1, underscored the role of the petrochemical industry in the country’s economic and industrial development, announcing plans for the second phase of the Petrochemical Special Economic Zone, saying “This initiative aims to ensure balanced growth while completing the value chain.”
Speaking at the induction ceremony of the Petrochemical Special Economic Zone Organization CEO, Abbaszadeh described the petrochemical industry as a key driver of value creation and economic development.
“In line with the Leader’s directive to prevent raw material exports and complete the value chain, the industry is leveraging all available capacities for balanced growth,” he said.
He noted that Iran’s petrochemical production capacity has reached nearly 100 million tons.
“With development programs outlined in the Seventh Development Plan (2024-28), we aim to achieve a 30-million-ton increase, raising total capacity to 131 million tons,” the NPC head added.
Abbaszadeh highlighted the region’s strategic importance, stating, “Iran’s petrochemical industry is a regional leader, and Mahshahr serves as a critical hub, producing essential and practical products.”
Domestic consumption of Mahshahr products
“Most products produced by the Petrochemical Special Economic Zone are used domestically,” Abbaszadeh said, noting that a diverse range of feedstocks enables petrochemical plants to meet the country’s needs.
He also pointed to the importance of projects such as NGL 3100, which will soon be operational, emphasizing its pivotal role in supplying feedstock to the Petrochemical Special Economic Zone.
The NPC managing director stressed the importance of supporting the local community, maintaining safety and security in the area, enhancing industrial and social infrastructure, and effective measures for the second phase of the region’s development.
Abbaszadeh called for greater private sector investment in the petrochemical industry.
“We must create favorable conditions for attracting investors and avoid imposing unnecessary restrictions,” he said.
He also highlighted the development potential of the second phase of the Petrochemical Special Economic Zone, noting its capacity to boost the local economy and create jobs.
“The Petrochemical Special Economic Zone is ready to collaborate with organizations and government bodies. We must use all available capacities to serve the honorable people of the region,” Abbaszadeh stated.