21 October 2025 - 10:49
  • News ID: 666061
Generative AI: A new path to value creation in petchem industry

SHANA (Tehran) – The head of information systems and digital transformation at the National Petrochemical Company (NPC) highlighted the need to integrate artificial intelligence into the petrochemical industry, saying generative AI can help design, evaluate and execute production scenarios and goals simultaneously, while also supporting marketing and new product development.

Speaking Monday, at the specialized meeting on “Digital Readiness Assessment in the Petrochemical Industry,” part of the “Digital Maturity Assessment of Industries and Businesses in the Seventh Development Plan,” Sajjad Nabizadeh said the main goal of digital transformation is to equip the sector with the latest knowledge and technologies while aligning policymaking and downstream industries for the future of petrochemical development.

He noted that the industry has entered a stage beyond the Fourth Industrial Revolution, where concepts such as human-machine-AI coexistence are emerging. “Generative AI, as one of the main tools for value creation, can play a central role in this evolution,” Nabizadeh said.

Given the steady global growth in demand for petrochemical products, Nabizadeh said the industry should focus not only on boosting production but also on creating added value and developing innovative platforms. He added that “generative chemistry”—the integration of petrochemistry, chemistry and generative AI—could significantly accelerate innovation in catalyst design and production lines, reducing process development time from weeks to hours.

“With generative AI, we can design, evaluate and implement production scenarios and goals simultaneously, and even use it for marketing and product development,” he said. “This approach allows us to reverse-simulate expected production impacts and design the required materials or catalysts based on specific objectives.”

Citing international examples, Nabizadeh said companies such as Aramco and Shell use generative AI to extend battery life, reduce charging times and develop lightweight composites, focusing on value creation from advanced carbon materials.

He emphasized that AI-driven modeling can improve production precision and efficiency in petrochemical complexes and optimize the use of raw materials. “With accurate data design, skilled workforce development and indigenous tools, we can position Iran’s petrochemical industry as an innovative leader in the global value chain,” he said.

Digital transformation: A strategic necessity

Shahram Rezaei, adviser to the NPC managing director, said Iran’s petrochemical industry must shift from hardware-based growth to digital innovation to maintain competitiveness and resilience. “Digital transformation is no longer optional—it is a strategic necessity for survival and growth in today’s global economy,” he said.

Rezaei noted that despite years of discussion, digital transformation has yet to be institutionalized in government structures. “The government must shift from being an operator to becoming a facilitator and guide, while the private sector should act as a key partner,” he said. “Such cooperation can take shape through data-driven platforms and joint digital projects.”

Highlighting imbalances in the petrochemical feedstock supply chain, Rezaei said petrochemical companies generate about $15 billion in foreign currency annually for Iran, and any disruption in feedstock supply directly impacts the national economy. “To manage these imbalances effectively, we need precise, real-time and intelligent data exchange between companies and upstream entities,” he said. “Without data transparency and smart connectivity, management decisions cannot be accurate.”

He added that unexpected events such as feedstock limitations, global price fluctuations or human errors can disrupt the entire production chain. “Using digital tools and intelligent simulation, we can predict such crises and prevent damage,” Rezaei said.

Citing successful domestic examples, he said several research centers have localized key equipment through data analysis and digital modeling, reducing design and manufacturing time by up to 75%. “Digital transformation is not just a concept—it can deliver real reductions in cost and time,” he said.

Rezaei also called for closer collaboration between the public and private sectors, emphasizing that “the government should learn from the private sector’s experience in technology regulation. The future of the petrochemical industry depends on smart industrial development and the transition from hardware to data-driven value creation.”

 Smart productivity: A priority for Persian Gulf Holding

Mehdi Qeynaqi, head of IT at Persian Gulf Petrochemical Industries Holding, said the company is launching major digital production and transformation projects this year, with secure infrastructure development and smart productivity as top priorities.

He identified three main factors behind reduced efficiency in the petrochemical industry—feedstock and gas supply challenges, process defects and equipment failures—which together account for 80% of operational issues. “By advancing technology, we can significantly improve the industry’s overall performance,” he said.

Qeynaqi stressed the importance of broad-based cooperation within the sector. “Through intelligent planning, strategic investment and a focus on secure infrastructure, we can implement large, transformative projects nationwide,” he said.

 The importance of digital transformation in organizations

Meqdad Hosseinpour, acting head of digital transformation at Marun Petrochemical Company, said success today is no longer defined by massive production or heavy investment but by the ability to use data and new technologies to achieve operational agility and sustainable productivity.

“Organizations that can integrate capital, equipment, data, algorithms and human talent will have the best chance to lead the market and sustain production,” Hosseinpour said.

He identified four key pillars of digital transformation—processes, workforce, data and technology—and emphasized that a culture of change, relevant skills, proper infrastructure and effective use of data are essential to success.

“Every project must deliver tangible value to the organization,” Hosseinpour added. “Without understanding digital maturity, investment in technology risks becoming a waste of resources.”

News ID 666061

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