Iran Petchem Development Arm Managing $11 Billion in Projects Despite Sanctions

Iran Petchem Development Arm Managing $11 Billion in Projects Despite Sanctions
(Sunday, May 18, 2025) 14:26

TEHRAN (NIPNA) – Iran’s Petrochemical Industries Development Management Company (PIDMCO) is currently overseeing 25 petrochemical projects worth over $11 billion, despite the country's challenging economic environment under international sanctions, its managing director said on Sunday.

Mustafa Motadayen, CEO of PIDMCO, said some of the projects under management are among the country’s largest industrial undertakings and are critical to Iran’s push for production growth and economic resilience.

“Despite sanctions, the company continues to function as the executive arm of Persian Gulf Petrochemical Industries Company (PGPIC), and has transitioned from a state-run to a private entity since 2014,” Motadayen told state media. “It has become one of the region’s leading project management contractors.”

PIDMCO has a 31-year track record in executing large-scale national projects, including processing units, utility and offsite infrastructure, and strategic developments in petrochemical hubs like Mahshahr and Asaluyeh. Since 1994, it has implemented around 28 projects with a cumulative investment of over $15 billion.

Key ongoing projects include Hormoz Petrochemical in two phases (each comprising seven sub-projects), Almas Petrochemical with seven sub-projects, the East Karoun flare gas recovery initiative with 19 sub-projects, and the PDH/PP project at the Bidboland Gas Refinery. These four alone account for more than $8 billion in investments.

Motadayen emphasized that PGPIC has prioritized projects nearing completion to accelerate returns. “Delays beyond six years in project execution typically lead to financial losses. Unlocking capital trapped in unfinished projects is essential to curbing inflationary pressures,” he said.

Highlighting the national importance of commissioning half-finished ventures, he noted that idle capital from incomplete projects compounds economic challenges, much like unproductive household savings in gold or foreign currency.

He added that PIDMCO is aligned with PGPIC’s strategic vision, particularly in completing the ethylene value chain. Key assets in this chain include the Gachsaran Polymer and Dehdasht Petrochemical projects, which will add significant value upon integration with ethylene output from Gachsaran Petrochemical.

Among the projects set to launch in the first half of this year are the Arghavan Gostar Ilam and Haiku Karoun petrochemical developments. The flare gas recovery project, seen as crucial for environmental protection and resource optimization, is also progressing toward staged completion.

Motadayen stressed that while Iran now produces over 80% of petrochemical project equipment domestically—up from near-total dependence on imports—full localization is neither feasible nor desirable. “Technical partnerships with global players remain vital for accessing top-tier technologies.”

He said that the company’s 2025 strategy includes entering international markets such as Uzbekistan, Oman, and Armenia. “This will not only generate foreign exchange revenues but also enhance competitiveness and transfer valuable expertise.”

PIDMCO is also reforming its project management structure, expanding roles beyond management contractor to general contractor and executor. “This shift will give PGPIC greater control over its investments and boost returns.”

As part of its human resources strategy, the company is focusing on retaining talent, fostering a culture of job security, and recruiting based on merit through a new nationwide digital platform. Collaboration with elite universities, including Sharif University of Technology, is central to this effort.

Additionally, PIDMCO is working to bring Iranian experts abroad back into the domestic workforce and is pursuing official recognition as a knowledge-based company. “Our aim is to enhance our R&D and technical capacity, and to collaborate with both domestic and international high-tech firms,” Motadayen said.

 


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