Hassan Abbaszadeh, also deputy oil minister, told the
Iranian Petrochemical Value Chain Conference that although installed capacity
is about 131 million tonnes, some 22–23 million tonnes remain idle due to
feedstock shortages worth an estimated $17–18 billion in sunk investment.
“The biggest challenge for the 7th plan is securing
sustainable feedstock,” he said, citing limits in propylene supply from
domestic refineries. NPC is working with Bandar Abbas refinery on a project to
produce 320,000 tonnes of propylene and plans new polypropylene units next
year.
He said NPC aims to lift capacity utilisation, cut
bureaucracy, and align project planning with market realities. “Investors must
study markets carefully. Commodity products sell easily, but specialty products
require branding and effort,” Abbaszadeh noted.
Global rules, financing and business climate
Abbaszadeh said Iran must also adapt to tightening global
rules on plastic waste and carbon. Draft international regulations could
restrict polymer sales unless producers meet environmental standards, he
warned.
He added that petrochemical projects face financing
hurdles: “A full PDH chain requires about $700 million. Without upstream
execution, downstream projects will fail.” Reforms such as updated feedstock
discount rules and tradable settlement bonds aim to improve investor
confidence.
NPC is also setting up a centre to monitor technical
licensing and international regulations, and is drafting a foresight roadmap to
keep Iran’s petrochemical sector aligned with global trends.
“Our main task is not only to expand
volumes but to strengthen value chains,” Abbaszadeh said. “Removing red tape
and creating a supportive business environment are vital for sustainable
development.”