Iran Accelerates Petchem Expansion with $6 Billion Investment in New Projects

Iran Accelerates Petchem Expansion with $6 Billion Investment in New Projects
(Sunday, May 18, 2025) 14:20

TEHRAN (NIPNA) – Iran is set to bolster its petrochemical sector with the launch of 15 new projects valued at $6 billion by March 2026, aiming to enhance production capacity and diversify its product offerings, according to Hassan Abbaszadeh, Deputy Petroleum Minister and CEO of the National Petrochemical Company (NPC).

These initiatives are projected to add approximately 8 million metric tons to the nation's annual petrochemical output, increasing the total capacity to around 107 million tons. The expansion includes the introduction of three new products, marking a significant step in diversifying Iran's petrochemical portfolio.

In the previous fiscal year, Iran produced 75.2 million tons of petrochemicals, with exports totaling 29.2 million tons valued at $13 billion. The NPC anticipates that exports will rise to 34.8 million tons, generating $13.6 billion in revenue by March 2026.

To support this growth, Iran is focusing on securing sustainable feedstock supplies. Efforts include the collection of associated gas from oilfields, with projects like NGK 3200 contributing to the feedstock supply chain.

The NPC is also emphasizing the completion of the petrochemical value chain to reduce raw material exports and increase the production of higher-value products. This strategy involves attracting both domestic and foreign investments, with 27 preliminary agreements already issued for new projects.

Iran's petrochemical industry currently accounts for approximately 28% of the region's capacity and 2.8% of the global capacity. With these developments, the country aims to strengthen its position in the international petrochemical market.

 


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