Value Chain Completion in Persian Gulf Coast, a National Strategy

Value Chain Completion in Persian Gulf Coast, a National Strategy
(Saturday, May 3, 2025) 09:12

TEHRAN (NIPNA) – The Deputy Minister of Petroleum and CEO of the National Petrochemical Company emphasized the importance of completing the value chain and developing the petrochemical industry in the northern and southern parts of Bushehr province. He stressed the need to fully utilize existing capacities to produce final products in the petrochemical industry.

Hassan Abbaszadeh made these remarks during the commemoration of Persian Gulf Day at the 7th Iran Expo, highlighting the role of the South Pars gas field in fueling the development of the petrochemical industry, which has led to the establishment of half of Iran's petrochemical capacity in Bushehr province.

Abbaszadeh pointed out that the growth of the petrochemical industry has fostered independence in many industrial sectors and that the next step involves focusing on opportunities to complete the value chain. He noted that numerous petrochemical products have the potential for further development in the value chain.

He mentioned a visit to a booth where polymer products were being converted into compounds, citing an example where polyethylene could see a two- to threefold increase in value through further production steps. This offers a significant opportunity to develop downstream industries in the country.

Abbaszadeh also referenced the export of half of the country's five million tons of polyethylene production, noting that the remaining 2.5 million tons could be utilized for value-added production in downstream industries.

He highlighted the excellent potential of Bushehr province for value chain completion, with a development plan for the northern and southern parts of Bushehr under Phase 3 of Asalouyeh. This plan includes a petrochemical downstream industries region, which offers favorable conditions for increasing the value of polymer products.

The CEO emphasized that the National Petrochemical Company would support the development of downstream industries in Bushehr and provide necessary incentives, including offering land to investors for value chain investments.

Abbaszadeh also discussed the capacity to utilize methanol production, with approximately 10 million tons of methanol produced annually, most of which is exported. He encouraged investment in the methanol value chain, which can be redirected towards chemical production, fuel additives, and as a base for paints and resins.

Additionally, he noted that Bushehr province needs a chlorine value chain, which had been overlooked despite various industries in the region. A project for this value chain has been approved, and further cooperation with the provincial government is planned.

Abbaszadeh concluded by reaffirming that petrochemical industry development in Bushehr will be based on maritime-focused strategies, in line with the 7th Development Plan, and he expressed hope that the presentation of investment opportunities will attract investors to the value-added downstream petrochemical industry.

 


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