Iran Produces 32m Tons of Petrochemical Products; $5.5b Exported

TEHRAN (Iran News) Speaking at a press conference on Wednesday, Hassan Abbaszadeh highlighted the unprecedented role of the media in covering major industry events, saying that media cooperation with petrochemical stakeholders has contributed to the successful implementation of strategies and reduced threats against the sector.

Abbaszadeh emphasized the importance of port infrastructure for the industry, pointing to new jetties, stronger transmission lines, and expanded loading and unloading capacity as key measures taken to support growth.

He noted that 15 petrochemical projects, four feedstock supply projects, three utility projects, and several other initiatives are scheduled for operation this year. So far, six projects have been inaugurated and entered production. The first phase of a flare gas recovery project was also launched in Khuzestan, returning 2.7 million cubic meters of gas per day to the feedstock network. Total investment in these projects amounts to 310 trillion rials ($6 billion).

The projects coming online this year will add a total of 9.8 million tons to production capacity.

Addressing regulatory issues, Abbaszadeh said a long-standing dispute over side-pricing formulas that had caused trading suspensions for many companies has now been resolved by a ruling of the Administrative Justice Court.”Petrochemical Products”

However, he identified feedstock supply as the industry’s most critical challenge. “Almost all existing capacity is being used, but many units remain idle due to feedstock shortages,” he said, adding that the solution lies in petrochemical companies investing in upstream projects and flare gas recovery. He stressed that large-scale flare gas recovery efforts aim to end routine flaring in targeted regions by next year.”Petrochemical Products”

The NPC head underlined Iran’s growing focus on African markets, where country-specific studies have been carried out to identify opportunities. This strategy follows Iran’s successful entry into the Indian market and aims to expand the customer base in non-state markets.”Petrochemical Products”

A smart monitoring project in cooperation with the Vice Presidency for Science and Technology is also underway to install advanced sensors and optimize production processes.

On energy efficiency, Abbaszadeh reported that 12 optimization projects were implemented last year in households, greenhouses, and poultry farms, replacing equipment for 40,000 consumers. This ensured uninterrupted production during peak consumption. Similar initiatives are planned for this year.

In energy generation, small-scale power plants and wind farms are under construction, including a major wind project in Sistan and Baluchestan Province.

Efforts to boost financing include the release of idle gas allocations, the issuance of €210 million in bonds with Bank Mellat, and new bond offerings for five projects. Abbaszadeh acknowledged that attracting investment remains a major challenge.

Environmental initiatives include coastal afforestation projects to absorb pollutants and prevent erosion. A crisis management protocol has also been developed to guide companies under different alert levels.

Abbaszadeh said NPC’s development strategy is built around three pillars: completing semi-finished projects, expanding domestic and international markets, and securing sustainable feedstock supply.

He also warned that a United Nations treaty currently under negotiation could impose new restrictions on plastics production, with major implications for Iran’s downstream petrochemical sector. NPC and the Department of Environment will hold a one-day conference this Saturday to brief industry stakeholders on the issue.

Looking ahead, Abbaszadeh announced that the 19th IranPlast Exhibition will open next Tuesday, serving as a key platform for interaction between polymer downstream industries and petrochemical producers.

This year, about 750 domestic and 67 foreign companies will participate, including direct exhibitors from China and India, and representatives from countries such as South Korea, Taiwan, Germany, Austria, Italy, and Turkey. Around 200 registered trade delegates are expected to attend B2B meetings.

He noted that despite travel advisories issued by some countries affecting participation, IranPlast will still provide a valuable opportunity to showcase industry capabilities and international cooperation.