Speaking to Shana, Saeid Baghbani said the industry’s performance this year has been on par with 1403 despite the conflict. He noted that about 32 million tons of petrochemical products have been produced so far in 1404, generating $5.5 billion in foreign currency revenue. Of 19 projects scheduled for commissioning this year, six have been completed, bringing petrochemical production capacity to more than 100 million tons.

Baghbani said about 22 million tons of installed capacity went unused in 1403, roughly 70% of it due to feedstock shortages. Addressing feedstock supply, along with equipment and process challenges, could activate much of this idle capacity, he said.

Securing stable feedstock

Baghbani highlighted upstream field development, flare gas collection and fuel optimization as solutions to the feedstock challenge. He said contracts signed by Bakhtar Petrochemical and Petrofarhang in upstream fields will soon take effect, while projects such as Bidboland Gas Refining Co.’s first phase, which collected 94 million cubic feet per day of flare gas, are already showing results.

He also pointed to gas-saving measures, noting that the National Petrochemical Co.’s energy optimization unit last year reinvested revenue from its 10% energy reduction campaign to replace equipment in several regions. These upgrades helped reduce consumption and boost output at Zagros and Pardis petrochemical complexes.

Baghbani added that special bonds are available for petrochemical firms to invest in the 10% energy reduction program. By participating, companies can secure a greater share of gas feedstock during supply constraints.

Investing in gas reduction projects

Baghbani said gas is available to the public at low prices without consumption limits, while petrochemical firms face the country’s highest fuel prices for their feedstock. By making efficiency improvements in areas where gas costs less, companies can lower their effective feedstock costs.

To ensure stable winter production despite energy imbalances, he said, the industry will continue leveraging the 10% energy savings plan. Negotiations are also underway to revise gas supply procedures during winter, which he said could significantly ease seasonal feedstock shortages.