Hamidreza Ajami, Investment Director at the National Petrochemical
Company (NPC), said on Thursday that over $12 billion in fresh investment is
needed to realize ongoing and future petrochemical projects through 2029, the
end of Iran’s current five-year development roadmap.
Speaking at a joint meeting with industry stakeholders and members of
Iran's Production Club, Ajami underscored the strategic importance of the
petrochemical industry for the Iranian economy, noting that despite accounting
for only 25% of Iran’s non-oil exports, the sector has generated nearly half of
the country’s foreign exchange earnings in recent years.
“The development of downstream and complementary petrochemical
industries is not possible without investment. A multi-pronged support system
from regulatory and governmental bodies is essential,” he said.
Ajami highlighted significant challenges, including restrictions on
foreign capital and feedstock supply shortages. He stressed the need for
inter-agency cooperation to resolve infrastructure issues such as gas
transmission bottlenecks and financing limitations.
Currently, 75 petrochemical plants are operating across the country,
with an annual production capacity of over 96 million tonnes. Around $13
billion in average annual export revenue has been generated from the sector in
recent years, he said. Projects are concentrated in energy hubs such as
Assaluyeh and Mahshahr, while over 140 new projects have been licensed with a
combined investment volume of $87 billion to date.
Ajami also emphasized the role of artificial intelligence in
streamlining licensing and investment procedures, noting that digital tools
could help minimize human error and improve transparency.
Call for Unified Industrial Strategy
Ali Agha Mohammadi, Head of the Economic Affairs Taskforce of the
Office of Iran’s Supreme Leader and a member of the Expediency Council, echoed
Ajami’s concerns, urging a long-term strategic plan and unified action to
complete and expand key petrochemical projects.
“In today’s fragmented industrial landscape, the time for individual
decision-making has passed. Coordinated teamwork is now essential,” Agha
Mohammadi told the gathering. “If petrochemicals are not our national economic
priority, then what is?”
He argued that the petrochemical sector has become Iran’s most
prominent non-oil exporter and possesses the potential to boost industrial
output across sectors currently hampered by raw material shortages.
Highlighting missed opportunities in regions such as Khuzestan, where
partially completed projects remain idle, Agha Mohammadi criticized what he
called “island-like” management styles and rivalries among entities that launch
duplicative projects rather than collaborate.
He called for the formation of a real consortium or federation to
drive execution. “We should not limit ourselves to ideas and paperwork.
Execution matters. The Supreme Leader has endorsed this path; now it is our
duty to act.”
Agha Mohammadi also floated the idea of integrating advanced
technologies like AI with petrochemical development efforts, advocating for
increased participation by private sector stakeholders, technocrats, and
youth-led innovation hubs.
He concluded by stressing that financing hurdles can be overcome
through consensus, citing Iran’s ability to attract billions in investment if
presented with a clear roadmap and stable strategy. “It’s not about pointing
fingers or seeking a leader. It’s about doing the work,” he said.
Reform and Innovation Needed
Ajami noted that NPC is overhauling its investment framework to make
licensing more efficient and encourage public-private partnerships. “New hybrid
financing models, including syndicated investment schemes and use of public
capital, are now a priority,” he said.
Ajami added that NPC is studying the potential for foreign and domestic
investor participation in joint ventures, drawing on past models like the
Sasol, Mehr, and NPC-Alliance projects.
The statements come amid a broader government push to revitalize
strategic sectors of the economy amid ongoing international sanctions and
shifting energy market dynamics.