The total output of Iran’s petrochemical industry reached 40 million tons in 2022, of which 40% or 27 million tons were sold in international markets, managing director of the National Petrochemical Company said.
“NPC earned close to $26 billion totally, $16 billion of which were generated by exports, and the rest [$10 billion] was received from selling 13 million tons of goods to domestic firms,” Morteza Shahmirzaei was also quoted as saying by IRNA.
Plans are underway to increase the current nominal annual production at 65 million tons by 23% to reach 80 million tons in 2023, he added, noting that if ongoing projects to boost feedstock delivery to 67 major petrochemical complexes, mostly concentrated in the cities of Mahshahr (Khuzestan Province) and Asalouyeh (Bushehr Province), become operational on time, both output and revenues will experience a substantial rise.
According to the NPC chief, this year, petrochemical feedstock will increase and 5 million tons will be added to the production capacity of the petrochemical industry.
“The nominal output is expected to reach 80 million tons and this will increase exports which, in turn, will lead to higher revenues.”
Shahmirzaei said last year, the gas feed capacity of petrochemical complexes was equal to 98 million cubic meters per day, which will increase this year to help raise output.
“Our focus is to complete the value chain of petrochemical products so that we can reduce the sale of raw materials and semi-finished products, create more added value and eliminate the need for imports, which currently stand at $1.5-2 billion,” he added.
Hassan Abbaszadeh, NPC’s director for planning and development, said that due to the lower attraction of foreign investments in the past few years, the main burden has been borne by holding companies and they invest about $4 billion annually in the petrochemical sector.
Since almost all big holding companies are semi-private, the official hoped that the real private sector would also invest in the petrochemical industry.
“Currently, 140 types of products are made by petrochemical complexes across the country and an additional 20 products are planned in the next five years,” he added.
Job Generation
According to the official, 920,000 people are active in the industry and a rise in NPC’s production by 1 million tons can create jobs for at least 170,000 more people.
“Currently, 68 projects are underway with an average progress of 30%.
These projects require an investment of $35 billion and so far $9 billion have been spent on them,” he said.
“We now have 30% of the installed capacity of the Middle East and about 3% of the capacity of the world's major products. With the help of the ongoing and future plans, we are trying to increase these capacities.”
Commenting on the performance of the Petrochemical Research and Technology Company, affiliated to NPC, in gaining the knowhow to produce catalysts, Abbaszadeh said this year, new catalysts will be unveiled.
According to the latest reports, all catalysts in the petrochemical industry will be indigenized with the help of Iranian experts and engineers in three years.
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.
