Ahmad Mahdavi Abhari, speaking Sunday at a ceremony to sign memorandums of understanding on energy consumption reduction projects, stressed the importance of managing gas use in the petrochemical sector. He said a portion of the country’s petrochemical capacity remains unused, resulting in significant economic losses.

He said the industry currently consumes about 25 billion cubic meters of gas annually. At full nominal capacity of roughly 96 million metric tons, gas consumption should reach about 33 billion cubic meters a year. The gap indicates that about 23% of capacity is idle, with roughly 60% of that due to feedstock shortages.

Mahdavi Abhari said the economic value of this unused capacity is substantial, estimating it at about $20 billion annually—capacity that is currently untapped but could play a major role in the national economy.

Non-oil exports must grow 23% annually

Citing official data, he said about $1.4 billion in exports were lost last year because of gas feedstock shortages, equal to 2.5% of the country’s total non-oil exports. Under the Seventh Development Plan, he said, non-oil exports must grow by 23% each year, and the value-creating petrochemical industry can make a significant contribution to meeting that goal.

To address energy imbalances, Mahdavi Abhari said at least three key measures are needed: leveraging public participation in managing energy consumption, which would yield long-term results if widely adopted; reforming consumption patterns and promoting a culture of efficiency, a time-consuming effort that requires sustained commitment; and investing in the development of new gas fields as well as collecting flare gas—steps that reduce environmental pollution, prevent waste of national resources and create economic value.

He added that projects have reached stages where progress is accelerating, and said the petrochemical industry has made significant strides in energy efficiency and conservation. Holding such meetings and signing agreements, he said, can strengthen that momentum and help optimize the use of the country’s energy resources.