On the occasion of National Petrochemical Industry Day, SHANA, amid a packed schedule of meetings and numerous programs, conducted an interview with the CEO of the NPC —an interview that seeks to take a different look at one of the country’s most strategic industries. This perspective deliberately avoids technical details, complex statistics, and highly specialized discussions, focusing instead on the big picture, the historical trajectory, fundamental challenges, and the future outlook of Iran’s petrochemical industry.

As one of the driving forces of the national economy, the petrochemical industry has experienced many ups and downs over more than six decades—from its initial formation to meet domestic needs to its transformation into one of the main pillars of non-oil exports and a key source of foreign currency earnings. Abbaszadeh, marking 61 years since the establishment of the National Petrochemical Company as the steward of the industry’s development, considers the failure to expand the petrochemical industry’s presence abroad to be one of the missed opportunities. He believes that although current international conditions may not be particularly favorable, steps must still be taken in this direction.

Another axis of the interview is the strategic role of the National Petrochemical Company in completing the value chain—moving beyond purely quantitative development toward qualitative growth and higher value-added production. According to Abbaszadeh, the future of the petrochemical industry, and even of the national economy, is tied to this path. Accordingly, the main focus of the Seventh Development Plan in the petrochemical sector is defined as implementing a comprehensive roadmap for completing the value chain and steering the industry toward producing higher value-added products.

What follows is SHANA’s interview with Hassan Abbaszadeh, CEO of the National Petrochemical Company.

What have been the main differences and turning points of Iran’s petrochemical industry across the three stages of “the beginning,” “the period of maturity,” and “the current stage”?

If we examine the development process of the country’s petrochemical industry across three stages, in the initial phase—formed in the 1950s—the main focus was on meeting domestic needs, particularly in agriculture. To this end, the country’s first petrochemical complex, Shiraz Petrochemical, was launched with an emphasis on producing chemical fertilizers. In the next stage, as the country moved toward industrialization, the petrochemical industry also became more diversified, with the production of products such as polymers and PVC placed on the agenda. During this period, in addition to meeting domestic demand, the necessary infrastructure for the development of related and downstream industries gradually took shape.

After the imposed war and within the framework of development plans, the petrochemical industry entered a stage of maturity. Alongside meeting domestic needs, its export role became more prominent. Today, at the current stage, the industry has become a mature sector with more than 60 years of history. In addition to supplying a significant portion of the country’s needs, it plays an important role in foreign currency earnings and non-oil exports and is considered a driving force behind the growth of many domestic industries.

Compared with leading countries in the region and the world, what is Iran’s current position in the petrochemical industry?

At the regional level in the Middle East, Iran ranks second in terms of its share of the petrochemical industry. Saudi Arabia ranks first with about a 42% share, while Iran stands second with around 30%. Other countries such as Qatar, the UAE, and Turkey each hold shares of about 4% to 9% and trail Iran by a significant margin.

Iran’s share of global production of major petrochemical products is about 3%. Given the country’s abundant hydrocarbon resources, greater focus on investment in this industry could lead to an improved position for Iran in the global market.

From a critical perspective, which parts of the petrochemical industry’s roadmap today need to be revised?

This is a question I constantly think about myself. Given sanctions and international developments, even with the efforts of senior figures and influential managers in the industry, I believe that at certain points we could have made different decisions. In management theory, when an organization comes under pressure, it has two options: “retreat inward” or “move outward.” In my view, at some stages we chose the strategy of retreating inward, whereas the better option might have been to move outward.

If we look today at the experience of countries such as Russia, we see that during sanctions, instead of limiting themselves, they turned to expanding petrochemical activities beyond their borders. By broadening international engagement and presence, they maintained and strengthened their position. In contrast, during certain periods, instead of expanding partnerships and establishing petrochemical branches and projects abroad, we limited ourselves to domestic activities.

At times when it was possible to form foreign partnerships and invest abroad, we could have had a more active presence in international markets. Efforts were made as well. For example, at one point there was discussion about purchasing the major German company “BASF,” and Iran even won the tender, but with U.S. intervention the tender was canceled. In my view, the failure to expand the petrochemical industry’s presence abroad is one of the opportunities that was lost. Even though current international conditions may not be particularly favorable, we must still take steps along this path.

How do you describe the role of the NPC in completing the value chain—from quantitative development to qualitative, value-added growth?

The role of the National Petrochemical Company in completing the value chain is extremely critical and decisive. Under normal conditions, the petrochemical industry produces and exports, but the next stage of development—enhancing value added and moving toward final products—requires precise guidance and governance, a responsibility that rests with the National Petrochemical Company. An analysis of today’s export product mix shows that most of them are positioned in the middle of the production chain and have lower value added compared with global standards. This means that many of our products are processed and converted into final goods in other countries, and some of those final products are even imported back into the country.

By carefully analyzing national needs, approximately $2 billion worth of imported products, and existing technical capabilities, the National Petrochemical Company has developed a comprehensive roadmap for completing the value chain. This roadmap shows private investors and economic actors the correct path for development and which products should be prioritized. It also provides incentives and the necessary support to facilitate investment in these areas.

The main focus of the Seventh Development Plan is the implementation of this roadmap and encouraging investment in value-chain completion projects so that Iran’s petrochemical industry moves toward producing higher value-added products.

In your view, what is the most important current challenge facing the petrochemical industry, and what plans do you have to address it?

The most important challenge facing the petrochemical industry is securing a stable supply of feedstock, which stems from the country’s culture of hydrocarbon consumption. We still primarily view hydrocarbon resources as fuel and energy consumption, and this mindset creates serious limitations for the petrochemical industry. Because of the country’s abundant hydrocarbon resources, we have built extensive gas transmission networks, but alongside this development, we must also pay attention to a crucial point: in our homes and schools, we must teach our children to consume this energy in a way that avoids waste. By no means do I mean consuming less; rather, we must move toward optimized consumption. When consumption is optimized, we can allocate a larger share of these resources to production in the petrochemical industry.

For example, in the current cold season, due to the priority given to supplying household gas, the natural gas feedstock for the petrochemical industry has been reduced. Therefore, optimizing energy consumption in the household sector and in general industries is essential so that gas resources can be directed toward production rather than fuel.

To address this challenge and ensure a sustainable supply of feedstock, the petrochemical industry has placed multiple measures on its agenda across four main strategies: collecting flare gas, promoting energy efficiency, participating in the development of gas fields, and investing in renewable energy. The petrochemical industry is currently the largest—and perhaps the only—investor in flare gas collection, and by the end of next year, about 1.5 billion cubic feet of gas per day will be supplied through this route.

Promoting energy efficiency by petrochemical companies?

Yes. Last year, the petrochemical industry invested in five provinces to promote energy efficiency in the household sector, focusing on public awareness and providing appropriate equipment for people. This year, the focus is on three northern provinces—Gilan, Mazandaran, and Golestan—and based on an agreement with the National Iranian Gas Company, we are working in these regions on energy efficiency initiatives.

On the other hand, through special measures enabled by the directives of the Supreme Leader and government support, the process for issuing investment licenses for the petrochemical industry to develop remaining gas fields has been facilitated. Fortunately, the first contract in this area is ready for approval, under which Bakhtar Petrochemical and the Petrofarhang Holding will jointly develop two gas fields, resulting in the production of 35 million cubic meters of gas per day. Other holdings have also expressed interest and are moving forward along the same path.

In addition, the petrochemical industry has entered the field of reducing gas consumption in power generation. By investing in renewable power plants such as solar and wind, it seeks to reduce gas use in electricity generation so that these resources can be directed toward petrochemical production. One example of these efforts is the plan by one petrochemical company to produce 2,500 megawatts of renewable electricity, about 1,000 megawatts of which will come online by the end of this year.

Beyond these four strategies, studies are also underway on the use of alternative fuels such as LPG and other methods in power plants, aiming for a more comprehensive solution to the challenge of securing a stable feedstock supply for the petrochemical industry.

How do you see the future of the petrochemical industry over the next 10 to 20 years, and how will it differ from the past path?

Fortunately, a roadmap for the petrochemical industry has been prepared through the end of the Eighth Development Plan (2033) and even for a 25-year horizon beyond that. The future of the industry is moving toward petro-refineries and the sustainable use of crude oil feedstock. The goal is for new refineries, instead of focusing solely on maximizing the production of fuels such as gasoline and diesel, to allocate at least 30% of their output to petrochemical products. Currently, the share of petrochemical products in the country’s refineries is less than 3%, while globally this figure reaches 65% to 70%. Increasing this share to at least 30% in new refineries will be the key to sustainable development and a major leap forward for Iran’s petrochemical industry.

If you were to summarize the role of the public in preserving production, employment, and foreign currency earnings of the petrochemical industry in one sentence, what would that message be?

My request to the people is to recognize the fact that the petrochemical industry belongs to them. The main shareholders of this industry are pension funds for teachers, the armed forces, the oil industry, and civil servants—all of whom are part of the public. Therefore, each of us must take energy efficiency seriously so that this industry can continue sustainable production and foreign currency generation.

The shutdown of any petrochemical company disrupts the employment chain and economic activity. It must be clear to all of us how serious the direct and indirect consequences of such a shutdown are for the lives of workers and stakeholders in this industry. For this reason, we ask our fellow citizens, especially during the cold season, to contribute to the preservation and sustainable development of the petrochemical industry by optimizing energy consumption.