“By completing the projects defined in the second and third leaps, and the implementation of strategic projects defined in the fourth step of the smart development of the petrochemical industry, achieving a goal of generating $50 billion of revenue can be realized in the horizon of 1406,” Shana quoted Mohammadi as saying on Monday.

Speaking at the unveiling ceremony of the NPC’s new portal, Mohammadi noted that 47 major projects have been defined to be implemented in the fourth leap of the petrochemical industry.

“For the fourth leap, a total of 47 new projects have been defined and classified into three sections: combined feed projects, new propylene production projects, and pioneering projects. With the implementation of the fourth leap projects by 1406, the cumulative investment in the country’s petrochemical industry will reach $ 125 billion,” he said.

He further mentioned the increasing demand for feedstock in the industry saying: “We received about 40 million tons of feed equivalent to one million barrels of crude oil per day worth $6 billion from the oil industry in the previous [Iranian calendar] year (ended on March 20), which was consumed in 67 petrochemical complexes.”

With the projects of the third leap going operational in the Iranian calendar year 1404 (starts in March 2025), the petrochemical complexes’ feed demand will reach the equivalent of 2.3 million barrels of crude oil per day, he added.

Mohammadi noted that despite the restrictions caused by the coronavirus pandemic in the previous year, the development goals of the petrochemical industry were completely achieved, saying: “Last year, 25 million tons were added to the country’s petrochemical production capacity and 34 million tons of final products were produced, Which generated $15 billion in revenue.”

According to the NPC head, there are currently 50 petrochemical projects underway across the country that will be operational by the end of 1404 and increase the annual production capacity of petrochemical products to 135 million tons.

The petrochemical industry plays a crucial role in Iran’s non-oil economy, as the export of such products is the second-largest source of revenue for the country after crude oil. Petrochemical exports already constitute nearly 33 percent of the country’s non-oil exports.

Facing the restrictions that the unjust U.S. sanctions brought about for the oil industry, its development has not been halted and, with a change in strategies, the Oil Ministry has been distancing itself from crude selling and is moving toward the production of products with more value-added.

One of the major areas for the realization of this goal has been the petrochemical industry, where a wide range of valuable products can be produced from Iran’s vast oil and gas resources.

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Speaking in an unveiling ceremony yesterday, Mohammadi said that the national petchem industry plays very proudly and dynamically its role in exports and earning forex for the country, noting that last year, the petchem industry received feedstock equal to $6b which was used in 67 petrochemical complexes.

He went on to say that last year, 25m tons was added to the capacity of the national petrochemical industry, adding that some 34m tons of products have been produced that earned $15b.

Pointing to the COVID-19 pandemic in the country, he said despite the pandemic, all developmental goals in the petrochemical industry have been materialized. Mohammadi also said that today there are 50 active projects in the petchem industry which will come on stream by 2025 and they will increase the production capacity to 135m tons.

Then he explained the fourth step in the petrochemical industry and said the fourth step has been defined in three categories which includes 47 projects and by 2027, Iran’s revenues from petrochemical industry will reach $50b.

Mohammadi reiterated that by 2027, some 2.3m barrels of crude oil per day will be used as the feedstock in the petchem industry and the capacity of this industry will increase to 167m tons.

He added that with implementation of the projects in the fourth step, the collective investment in this industry is estimated to hit $125b by 2017.

Mohammadi stated that access to the feedstock is the most important advantage for developing petrochemical industries and the production capacity in this industry has neared to 100m tons. He said currently industry uses some one million barrel per day of oil as the feed.

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“The face (the outlook) of the petrochemical industry is changing with the implementation of downstream petrochemical projects and the diversification of the product portfolio,” Shana quoted Behzad Mohammadi as saying during a visit to petrochemical projects in Mahshar, south western Khuzestan province.

Stressing the significance of the downstream industries in the development of the petrochemical sector, the official said one of the NPC’s long-term goals, in the path toward sustainable and smart development of the industry, is the implementation of downstream projects based on the country’s basic feedstocks.

He also emphasized that implementing petrochemical projects with the aim of completing the industry’s value chain is currently the most important goal of the NPC and all the company’s current programs are set to fulfill this goal.

“The petrochemical industry is in dire need of diversification of its final products, so the National Petrochemical Company is looking to develop the industry’s production chain to create a resilient industry so that the country would not need to import expensive products,” he stated.

The official underlined the increase in the country’s propylene production as one of the NPC major goals for sustainable and smart development of the petrochemical industry in the long run and said: “An important goal in planning new petrochemical projects is to meet the industry’s annual need for three million tons of propylene.”

Back in December 2020, Mohammadi had announced launching a four-step plan for developing the country’s petrochemical industry, in which the basket of petrochemical products would be noticeably diversified through 30 strategic projects.

Mohammadi said that the mentioned 30 projects were defined based on the oil and gas feedstock and base products as well as investigating the status of domestic and international markets.

The official noted that 90 types of petrochemical products are currently produced in the country, among them 18 types are polymers categorized in 333 grades.

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