Iran Reports 32 mln Tonnes of Petchem Output in Five Months, Plans €730 mln Bond Issue

Iran Reports 32 mln Tonnes of Petchem Output in Five Months, Plans €730 mln Bond Issue
(Saturday, September 6, 2025) 14:08

TEHRAN (NIPNA) – Iran produced around 32 million tonnes of petrochemical products in the first five months of the current Iranian year despite outages, a senior official said on Wednesday, adding that the government will soon issue €730 million worth of Islamic bonds to help finance new projects.


Hassan Abbaszadeh, deputy petroleum minister and head of the National Petrochemical Company (NPC), told reporters that output was broadly in line with the same period last year. Exports reached about 13 million tonnes worth $5.5 billion, while domestic sales rose to 7 million tonnes worth about $4 billion, driven by higher demand from downstream industries.

He said 15 new petrochemical plants, four feedstock supply units and several infrastructure projects are due to come on stream this year, with six already inaugurated, including flare gas recovery facilities and heavy polyethylene plants. NPC expects the projects to add 9.8 million tonnes of annual capacity with $6 billion in investment.

Abbaszadeh noted that feedstock shortages remain the industry’s main challenge, leaving about 22% of installed capacity idle. A government task force is pushing large holding companies to invest upstream to secure supply, while flare gas capture projects are expanding.

He also highlighted recent regulatory moves, including resolution of a long-running dispute over utility pricing with Iran’s competition council, which had previously disrupted financial transparency and trading of petrochemical shares.

To finance expansion, NPC has already arranged €210 million in Islamic bonds through Bank Mellat for three projects, and is finalising another €730 million issuance with Bank Mellat, Tejarat Bank and Bank Melli.

Abbaszadeh said Iran is also studying export markets in Africa and Asia to diversify sales, while boosting monitoring and digital oversight of production and inventories.

The official added that next week’s IranPlast exhibition will host 705 domestic and 67 foreign companies, with a strong focus on global plastics standards and environmental concerns, including a forthcoming UN treaty on plastic waste.

 


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