Iran eyes $100 bln Petchem Investment, Targets Value-added Growth

Iran eyes $100 bln Petchem Investment, Targets Value-added Growth
(Saturday, August 9, 2025) 11:09

TEHRAN (NIPNA) – Iran’s National Petrochemical Co. (NPC) plans to attract as much as $100 billion in investment for 144 licensed projects, with a focus on expanding value chains, completing semi-finished plants, and meeting goals under the country’s seventh development plan, its investment chief said on Tuesday.


Hamidreza Ajami, NPC’s director of investment, told the oil ministry’s Shana news service that targeted investment would boost value creation, foreign currency earnings, and jobs, while enhancing the sector’s share in Iran’s non-oil exports. The petrochemical industry already accounts for about 25% of the country’s non-oil exports and 19% of industrial value added, he said.

Since 1979, the sector has drawn around $87 billion in investment, about 19% of it from foreign sources. The development plan for 2024-2029 envisages $22 billion in planned investment, with $12 billion underway. Ajami said some plants will start up this year, while financing is being arranged for others.

The 144 licensed projects include 20 with over 70% physical progress, 32 between 20% and 70%, and 92 with less than 20%. NPC is seeking to draw foreign capital despite sanctions, leveraging partnerships through blocs such as BRICS and the Shanghai Cooperation Organisation.

Ajami called the petrochemical industry a pillar of national security, linking upstream oil and gas to a wide range of downstream industries. He said investment priorities include flare gas recovery, projects aligned with the development plan, and initiatives with high export potential.

Challenges include limited foreign currency resources, logistics constraints, and feedstock supply volatility. However, Ajami said Iran’s industry retains credibility among global players, with some foreign firms maintaining cooperation despite sanctions.

To attract capital, he pointed to legal guarantees for foreign investors, customs exemptions in free zones, growing domestic engineering capacity, skilled and low-cost labour, access to international waters, and proximity to 15 neighbouring markets. NPC is also encouraging public participation in projects through investment funds and bond issuance.


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