Hassan Abbasszadeh, deputy petroleum minister and head of the National Petrochemical Company (NPC), said Iran had already invested about $10 billion in the first phase of projects in Makran and Chabahar, creating capacity for more than 10 million tonnes of petrochemical products annually, including 3.5 million tonnes of polymers.
“Focusing on downstream and complementary industries is a national strategy in Makran,” Abbasszadeh said at the inauguration of the first phase of a 1,000-megawatt power plant at the Makran Petrochemical Complex. “This ensures balanced development, stronger value chains and more jobs for local communities.”
He said $90 billion has been invested in Iran’s petrochemical sector to date, but the industry still needs to move further into higher value-added products. The government estimates infrastructure development in Makran alone will require about $3 billion, part of which has already been committed by energy holding company Shastan.
The official also pointed to Iran’s energy supply challenges, blaming past consumption patterns for the imbalance despite the country’s vast hydrocarbon resources. He said new gas, solar and renewable power projects, including wind farms in Sistan-Baluchestan province, are being developed to support petrochemical plants while reducing emissions.
Abbasszadeh said the government plans to add 2,400 megawatts of renewable power to the national grid next year, freeing up hydrocarbons for the petrochemical sector. “Using renewables not only reduces carbon intensity but also enhances the efficiency of our petrochemical industry,” he said.
Iran expects several petrochemical projects in Makran, backed by investors including Shastan, Bakhtar Group and Pasargad Energy Development Group, to come on stream next year. NPC said progress on these projects has surpassed 70%.
Abbasszadeh stressed that environmental safeguards and the use of local labour are key priorities. He added that localisation in petrochemical equipment has reached 75%, and NPC aims to increase that to 85-90% in Makran projects.
Beyond petrochemicals, the government is also encouraging investment in agriculture and marine industries to diversify economic growth in the underdeveloped southeastern region bordering Pakistan and Afghanistan.
“Social responsibility in Iran’s petrochemical industry goes beyond conventional Western models,” Abbasszadeh said. “Supporting local communities while ensuring investor returns is central to our development approach.”