Hassan Abbaszadeh, who also serves as deputy
petroleum minister, said investment by Persian Gulf Petrochemical Industries
Company (PGPIC) and the Oil Industry Pension Fund had helped decommission 10
flares at the Bidboland complex in East Karoun, alongside additional units at
NGL 3100.
“Shutting down flares not only generates economic
benefits but also cuts environmental pollutants, making it a cost-effective
short-term measure to address gas imbalances,” Abbaszadeh told an event marking
the conclusion of the government’s “10% Energy Consumption Reduction” campaign.
He stressed that Iran’s biggest challenge is
securing stable feedstock for its petrochemical sector. The industry currently
consumes about 50 mcm of gas per day as feedstock and another 60 mcm for its
captive power plants. But 22% of installed capacity, equal to $18 billion in
investments, is idle due to feedstock shortages, he said.
Abbaszadeh noted that under new cabinet
decisions, petrochemical companies investing in upstream gas field development
will be guaranteed long-term feedstock supplies. “This measure has already
sparked private-sector interest, and the first partnership contracts are
expected soon,” he added.
The official also outlined renewable energy
projects linked to the sector, including 100 megawatts of power generated this
year from petrochemical facilities and plans for a 620-MW wind farm in
Sistan-Baluchestan.
On the social front, he said part of the
campaign’s savings had been redirected to welfare projects, such as providing
wheelchairs for low-income families, which encouraged greater public
participation.
Abbaszadeh also called for boosting private
ownership in the sector, noting that only 15% of the industry is currently held
by genuine private players, with the remainder managed by pension funds and
quasi-state bodies. “Raising this to 30% by the end of the Seventh Development
Plan is essential, since private operators have consistently proven more
efficient and competitive in global markets,” he said.
Despite sanctions, Iran continues to export
petrochemical products to Europe, he added, crediting private firms with
developing innovative marketing strategies.