Iran Aims for Over 83 Million Tons in Annual Petchem Output by 2025

Iran Aims for Over 83 Million Tons in Annual Petchem Output by 2025
(Saturday, May 3, 2025) 09:20

TEHRAN (NIPNA) – Iran’s petrochemical industry is targeting a production capacity of more than 83 million tons for the year 2025, with plans to expand capacity to 105 million tons by the end of the year, said the Deputy Minister of Petroleum and CEO of the National Petrochemical Company (NPC).

In a meeting with the heads of major petrochemical holdings and the Secretary of the Petrochemical Employers’ Association, Hassan Abbaszadeh outlined the key goals for the industry, emphasizing both production growth in existing plants and the launch of new projects that are expected to contribute significantly to production volumes.

"We are aiming for 83.5 million tons of production in 2025, supported by the completion of several new projects and expansions in existing facilities," Abbaszadeh said. "The target is to increase production capacity to 105 million tons by the end of 2025."

The discussion, which took place on Wednesday, also highlighted the need for increased safety measures within the industry. Abbaszadeh stressed the importance of HSE (Health, Safety, and Environment) protocols, especially in petrochemical terminals and storage tanks, calling for ongoing monitoring and stringent safety practices.

As part of efforts to enhance safety and efficiency, Abbaszadeh revealed plans to implement a comprehensive safety program for terminals and storage tanks. "The focus will be on minimizing product dwelling time at docks, particularly in Assaluyeh and Mahshahr, where many of the country’s petrochemical facilities are located," he added.

In line with these objectives, the CEO also noted the importance of cooperation between NPC and petrochemical holdings, stressing that joint efforts have already led to significant achievements across various sectors. "The collaboration with holdings has been instrumental in driving the industry’s growth, and a unified approach is critical for continued progress."

In 2024, the petrochemical industry reached a production capacity of 96.6 million tons, with 75.2 million tons of various petrochemical products produced and delivered to both domestic and international markets. Exports for the year reached 29.2 million tons, valued at approximately $13 billion, while domestic sales amounted to 13.1 million tons, valued at around $11 billion.

For 2025, Abbaszadeh projected exports of 34.8 million tons, with an estimated value of $13.6 billion. Additionally, domestic sales are expected to reach 16.1 million tons, valued at over $10 billion.

This year, eight million tons of new production capacity are expected to come online, contributing to the overall goal of 83.5 million tons in total production. Abbaszadeh also mentioned that 10 million cubic meters of flare gas would be collected and converted into feedstock for petrochemical plants.

Regarding the feedstock supply, Abbaszadeh emphasized the importance of increasing the use of flare gas recovery and exploring oilfield reserves for enhanced production. "This year, 51 million cubic meters of natural gas will be used as feedstock, while 63 million cubic meters will be required for fuel," he said.

The CEO also highlighted the importance of energy efficiency and the need for petrochemical companies to meet their social responsibility commitments. He urged holdings and petrochemical companies to collaborate in the upcoming execution of industry excellence awards, stressing the role of strategic councils in achieving these goals.

NPC’s role as the governing representative in the petrochemical industry was also underscored by industry representatives, including Ahmed Mahdavi Abehri, the Secretary-General of the Petrochemical Employers’ Association, who reaffirmed the association’s unwavering support for NPC’s leadership in tackling challenges and fostering growth within the industry.

The meeting concluded with additional comments from various representatives, including advisers from the Persian Gulf Holding and Petrofarhang Group, all calling for a strategic and collaborative approach to address the industry's challenges and sustain its development trajectory.

 


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