Hossein Alimorad, NPC’s director of planning and development, told the third Iranian Petrochemical Value Chain Conference that the country must shift away from bulk exports of basic feedstocks and move toward higher-value derivatives to secure long-term economic growth.
“The development of value chains in methanol, propylene, ethylene and aromatics can transform both the future of the industry and the economy,” Alimorad said. “Today, petrochemicals are no longer just a production activity – they are the backbone of industrial and economic development, especially for developing nations like Iran.”
Alimorad noted that regional rivals including Saudi Arabia, Qatar and the United Arab Emirates, unburdened by sanctions or financing limits, are rapidly investing in downstream segments and advanced technologies, solidifying their positions in global markets.
Methanol and propylene gaps
Iran produces more than 16 million tonnes of methanol annually, making it one of the world’s largest producers. Yet only 15,000 tonnes of the 10 million tonnes output in 2024 were consumed domestically in downstream industries such as olefins, methylamines, glycols and clean fuels, he said.
A similar shortfall exists in propylene. Iranian petrochemical plants are running at just 74% of nameplate capacity, leaving downstream users reliant on imports. Products derived from propylene account for about 70% of Iran’s $2 billion petrochemical imports, or nearly $1.4 billion a year, Alimorad said.
Projects such as the Salman Propylene complex are expected to narrow the gap, but the NPC official warned that more investment in propylene derivatives such as propylene oxide, acrylonitrile and maleic anhydride is critical.
Technology and competitiveness
Alimorad stressed that Iran must also embrace Industry 4.0 technologies – including digitalisation, artificial intelligence and the industrial internet of things – to boost efficiency and productivity in downstream operations.
NPC has outlined three main priorities: expanding the methanol chain through MTP and MTO projects, closing the propylene gap through PDS and MTP routes, and completing downstream ethylene and aromatics chains to raise exports of higher-value products.
Alimorad said moving away from feedstock exports could generate up to 120,000 direct and indirect jobs while raising petrochemical export revenue from $13 billion to $20 billion. The strategy could also help stabilise Iran’s currency market, ease inflationary pressures and attract several billion dollars in foreign investment.
National effort required
Achieving these targets, he said, requires coordination across the industry, from private and semi-private petrochemical producers to banks, the National Development Fund and research institutes.
“Growth and development of methanol and propylene chains alongside completing ethylene and aromatics are not just industrial projects,” Alimorad said. “They are a national strategy for achieving sustainable economic growth. If all players move together, Iran will break free from crude exports and emerge as a major global petrochemical player.”