Subsidiaries of the Persian Gulf Petrochemical Industries Company signed 200 memorandum of understanding worth $600 million with domestic manufacturers at the third exhibition and convention to support locally-made products in petrochemical industry (also known as PGPIC Forum 2022), held on Kish Island from February 21-23, managing director of PGPIC said.
Referring to various sections of the event that includes parts and equipment, chemicals and catalysts, Abdolali Ali-Asgari said, “Besides production of physical equipment, acquiring technical knowhow required by the petrochemical industry is of great importance.”
He emphasized on supporting knowledge-based companies, especially in the development of downstream industries, and said the development of downstream industries requires new technologies that will lead to the production of various products with high added value and help create employment, the Oil Ministry’s news agency Shana reported.
“In this year’s edition of the event, 320 knowledge-based companies are present,” he said.
The exhibition is organized in collaboration with PGPIC, Vice-Presidency for Science and Technology, Iranian Petroleum Industries Equipment Manufacturers Association and other bodies active in Iran’s petrochemical sector.
All subsidiaries of PGPIC have participated to discuss, assess, hold specialized panels and conduct B2B & B2C meetings for the localization of Iran’s petrochemical industry in the fields of consultancy, engineering, production, services, startups and knowledge-based companies.
PGPIC Forum 2022 provides the platform for participants to interact, share ideas, present business opportunities and services, and sign bilateral contracts to support domestic production.
As Iran’s largest petrochemical company with 60 subsidiaries, PGPIC accounts for around 42% of the national petrochemical production, which is about 70 million tons per year. It also accounts for 41% of Iran's petrochemical exports.
PGPIC is a public holding company that manages natural gas processing plants and chemical factories, as well as oil and polymer companies. The company earned $2.4 billion from petrochemical export in the first half of the current Iranian year (March 21-Sept. 22, 2021).
Its performance improved during the period compared with the first six months of last year as it increased its operating income by 71%, consolidated operating profit by 164%, raised net profit by 148% and its earnings per share grew by 146%.
PGPIC is now ranked 37th in the world, second in the Middle East after SABIC and almost unrivaled in the country in terms of sales.
The company has invested over $2.3 billion in various projects in the past three years, despite sanctions imposed by the US on the company.
In May 2018, the US pulled out of the nuclear deal signed between Iran and six world powers in 2015 and later imposed new sanctions.
The US Treasury Department in June 2019 announced new restrictions on Iran's petrochemical sector that applied to PGPIC and 39 of its subsidiaries and foreign agents.
This slowed down the progress of PGPIC projects but did not dislodge it because domestic companies and manufacturers have been filling the gaps and supplying a major part of the equipment.
Petrochemical Output, Exports
Petrochemical output has increased by 8.5% compared to last year and the export of petrochemical products had an 8% rise this year while the country is still hit by unfair sanctions, secretary-general of the Association of Petrochemical Industry Corporations.
Ahmad Mahdavi appreciated the efforts of all who are involved in the petrochemical industry, domestic producers and knowledge-based companies active in the field and said the country's petrochemical industry is the main driver of Iran's economy.
The petrochemical industry has played a key role in Iran’s economic growth, as it creates value-added and reduces the sale of oil and gas on which the economy has been dependent for decades.
With abundant hydrocarbon reserves and new private sector investments, Iran is working hard to maintain its global status in the key sector and broaden its scope.
According to the National Petrochemical Company, 67 petrochemical plants across the country produce a large variety of petrochemicals (350 types), for which there is high international demand. They are exported to 30 Asian, European and South American countries.
Iran has invested $53 billion in the industry and total investment will reach $93 billion by 2025.
According to plans, annual petrochemical production capacity would reach 130 million tons four years later. The petrochemical sector is expected to generate more than $37 million by 2025.
Currently, 50 projects are underway across the country to increase petrochemical output and help develop the downstream sector.
