The Oil Ministry has prioritized the petrochemical industry not just as a production sector but as a key driver of economic growth, currency stability, and balanced regional development. In an interview with SHANA, NPC CEO Hassan Abbaszadeh outlined new approaches being emphasized, including synchronizing capacity development with sustainable feedstock supply, focusing on increasing actual production over nominal capacity, facilitating stalled projects, boosting domestic manufacturing, and localizing strategic technologies.

Abbaszadeh stated that the NPC's role as the industry's regulatory body has become increasingly important in coordinating between the government, holding companies, the private sector, and investors.

Government Approach to Petrochemicals

The 14th government's policy for the petrochemical industry is focused on increasing production, completing value-added chains, developing export markets, and facilitating project implementation, Abbaszadeh said. He noted the priority is development aligned with completing the value chain and reducing raw material sales by leveraging domestic capabilities and focusing on feedstock management.

To achieve these goals, specialized working groups have been formed to coordinate with the 7th National Development Plan and manage issues related to feedstock, energy efficiency, and project feasibility studies. Efforts to streamline licensing and financing for stalled projects are also underway.

Abbaszadeh noted that while capacity development continues, the current government places greater emphasis on removing executive obstacles and increasing domestic value-added compared to previous administrations. The strategy of completing the value chain, mentioned in previous development plans, has become more closely linked with the country's macroeconomic goals.

Feedstock Security a Key Strategy

Given challenges related to natural gas and feedstock limitations, Abbaszadeh said the government is focusing on optimal management of feedstock resources as a key strategy for production and export stability. This includes linking upstream projects directly to the petrochemical industry's needs, such as collecting associated petroleum gases (flare gas), developing NGL projects, and increasing the recovery of ethane, propane, and butane from oil and gas fields. These actions aim to reduce feedstock imbalances and increase reliable supply for existing and under-construction units.

The government is also working to coordinate capacity development with the national energy grid's capabilities. Due to seasonal gas limitations, particularly in winter, efforts are being made to optimize energy consumption in petrochemical complexes, manage gas allocation priorities, and improve unit efficiency to prevent production stops.

Abbaszadeh characterized this as a shift from a capacity-focused approach to a balanced, feedstock-oriented, and value chain-focused approach aimed at increasing actual production, reducing raw material sales, enhancing domestic value-added, and increasing the industry's resilience against energy constraints and sanctions.

Domestic Manufacturing and Technology

Abbaszadeh highlighted the strengthening of domestic manufacturing and the localization of strategic catalysts and equipment as another achievement. He noted that a significant portion of required catalysts, previously heavily import-dependent, have now been localized with support for knowledge-based companies and research centers. This, he said, has resulted in significant foreign currency savings and reduced risks from sanctions and production stoppages.

Exports and Currency Return

The petrochemical industry has played a decisive role in supplying foreign currency in recent years, a role that has become more targeted under the 14th government, Abbaszadeh said. He described petrochemical companies as traditionally being among the most reliable export sectors in terms of returning export earnings to the country's currency cycle.

He stated that the transparent structure of petrochemical companies, with large firms and listed holding companies, allows for accurate monitoring of financial flows, leading to more orderly and supervised currency repatriation. This, in turn, increases the trust of monetary and currency policymakers in the industry.

Message to Investors

Abbaszadeh's message to industry activists and investors was to focus on completing the value chain and converting semi-raw materials into valuable products for greater profit and resilience against economic fluctuations.

"One of the important advantages of Iran's petrochemical industry is the availability of its raw materials inside the country," he said, adding that the NPC is committed to comprehensive interaction with the domestic and foreign private sector to develop the petrochemical value chain. "We firmly believe that the private sector should have a comprehensive presence in Iran's petrochemical industries, and we know that a suitable business and investment environment, along with the necessary feedstock and infrastructure, are essential conditions for the presence of the private sector, both domestic and foreign, in this industry."