PGPIC Announces Structural Reforms, New Investment Strategy

PGPIC Announces Structural Reforms, New Investment Strategy
(Saturday, May 10, 2025) 00:00

TEHRAN (NIPNA) -- The Persian Gulf Petrochemical Industries Group (PGPIC) is implementing structural reforms aimed at balanced development, enhanced profitability, and upstream oil and gas investment, a senior company official said on Friday.

Speaking at a press briefing on the sidelines of the 29th Iran Oil, Gas, Refining and Petrochemical Exhibition, Mahmoud Amin-Nejad, PGPIC’s Vice President for Planning and Business Development, said the group has launched several short-term, high-yield projects while restructuring investment processes in consultation with financial market experts.

“Eight years ago, PGPIC entered the upstream sector by acquiring and managing the Bidboland Gas Refinery. Since then, it has carried out significant flare gas recovery projects and refinery development initiatives,” Amin-Nejad said. “We are now preparing to enter new oil and gas fields, with official announcements expected soon.”

Highlighting issues of imbalanced development within the value chain, Amin-Nejad cited delays in the downstream segment of the Bidboland ethane chain, caused by setbacks at the Gachsaran petrochemical plant. He emphasized that new management is prioritizing projects that ensure consistent shareholder returns.

“With limited financial resources, a prioritization system has been introduced to focus on high-impact, profitable projects,” he said. Priority ventures currently include Dehdasht Petrochemical, the expansion of health-grade polymer production, Bidboland flare gas recovery, phase two of the Hoveyzeh Gas Plant, and the long-pending Sadaf Petrochemical Project.

“The Sadaf project, for instance, can now proceed thanks to funds from the divestiture of equity in Arzesh Mandegar Khalij Fars,” he noted.

PGPIC is also pursuing fast-track projects to avoid capital lock-up. “A $30 million upgrade at the Hoveyzeh refinery will boost capacity and supply feedstock to Bandar Imam, increasing overall profitability,” Amin-Nejad said. He also outlined plans to integrate the ethylene-to-polyethylene chain in health polymer production for higher value generation.

In a broader strategic shift, the company is introducing organizational and procedural reforms under the oversight of specialized market committees.

“As Dr. Shariatmadari emphasized, we are committed to structural reform rather than piecemeal adjustments. Committees of legal, monetary, and capital market experts are reviewing and updating internal regulations to ensure operational transparency,” he said. “This will give shareholders confidence that their investments are in responsible hands.”

 


Email is required
Characters left: 500
Comment is required