Iran Hosts Key Petchem Conference as Experts Call for Strategic Overhaul

Iran Hosts Key Petchem Conference as Experts Call for Strategic Overhaul
(Monday, May 5, 2025) 10:19

TEHRAN (NIPNA) — The first expert pre-session of Iran’s Second National Conference on Development and Foresight in the Petrochemical Industry was held in Tehran, spotlighting the critical role of the salt park project in the country’s petrochemical value chain.

The event was organized by the Oil and Energy Think Tank of Imam Sadiq University, in cooperation with Arvand Petrochemical Company. The session featured remarks from senior industry figures including Hossein Najabat, former CEO of the National Petrochemical Company (NPC), and Bahman Behzadi, deputy CEO of Arvand Petrochemical. Participants discussed Iran's historical trajectory in the petrochemical sector, structural challenges, and overlooked opportunities within the chlorine-alkali industry.

Historic Foundations and Structural Hurdles

Najabat opened with a retrospective on Iran’s petrochemical evolution, beginning with the establishment of the Shiraz Petrochemical Complex in 1958 and the formation of NPC in 1964. He recalled the heavy reliance on foreign expertise in early decades and noted Iran’s post-revolution shift toward domestic self-reliance, particularly after the Iran-Iraq war disrupted production facilities.

Highlighting Iran’s 20-year development vision launched in 2005, Najabat said the country had aimed to reach 220 million tonnes of annual petrochemical production by 2025. “We ended up at just 90 million tonnes—a 62% shortfall that deserves serious reflection,” he said.

Najabat was critical of the way Iran implemented privatization policies under Article 44 of the Constitution, asserting that the fragmentation of NPC into smaller units weakened Iran’s global competitiveness. He pointed to a €6.5 billion finance deal once backed by NPC as a measure of its former international standing, now diminished due to poor policy execution.

He also drew a sharp distinction between self-sufficiency and self-reliance, arguing that Iran never sought total independence from imports but aimed to ensure strategic domestic production capabilities. “Despite having 100% capacity in project engineering and fixed equipment manufacturing, mismanagement has constrained our potential,” he added.

Salt and the Chlorine-Alkali Chain: An Untapped Goldmine

Behzadi focused on the role of salt in the chlorine-alkali industry, calling it a strategic yet underappreciated feedstock. “Salt is the cornerstone of producing caustic soda, chlorine, and PVC,” he said. He lamented that both industry players and the public have overlooked its potential.

He noted Iran’s natural advantages—such as high salinity in the Persian Gulf and low humidity zones like Mahshahr—and stressed that neighboring countries are eager importers of Iranian salt. However, he said this demand remains unmet due to infrastructural and policy barriers.

Behzadi said the global market for PVC—estimated at $97.92 billion in 2024—is expected to reach $146.89 billion by 2029. By contrast, Iran’s annual PVC output stands at 790,000 tonnes, trailing behind regional demand such as Turkey’s 923,000 tonnes of PVC imports.

He also criticized the lack of intra-industry knowledge transfer, noting that while Arvand Petrochemical has successfully implemented membrane technology in its chlor-alkali units, other major producers, such as Bandar Imam Petrochemical, have not followed suit. “This is not merely a technical gap—it is a strategic loss,” he said.

Call for Managerial Reform and Human Capital Development

Both Najabat and Behzadi emphasized the need for competent leadership and better governance. Najabat argued that managing a $3.5 billion petrochemical project requires a different level of professional expertise than smaller ventures, stressing the importance of appointing capable executives.

Behzadi echoed the sentiment, announcing the drafting of new guidelines for assessing managerial competence. “Pipes, towers, and exchangers don’t make this industry—people do,” he said, underscoring the central role of skilled human capital in driving innovation and growth.

Both speakers called for stronger ties between academia and industry to ensure a more resilient and future-ready petrochemical sector.

The Second National Conference on Development and Foresight in the Petrochemical Industry is scheduled to take place later this year, continuing a broader dialogue on strategic reform and investment in Iran’s industrial future.

 


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