Speaking at a pre-session of the “International Investment and
Financing in Oil, Gas, and Petrochemical Industries” conference, Farshid Ahmadi
highlighted the strategic role of petrochemicals in Iran’s non-oil exports.
“About one-third of Iran’s non-oil exports come from petrochemical products,
demonstrating the industry’s resilience even under sanctions,” he said.
Ahmadi said that since 2011, the NDF has financed more than 65 oil,
gas, and petrochemical projects with a total commitment of nearly $25 billion.
Specifically in petrochemicals, 14 projects worth roughly $3 billion have been
funded, including complexes in Ilam, Salman Farsi, Gachsaran, Dehloran, and
Sahand Polymer, producing methanol, ammonia, urea, and styrene. These projects
have contributed both to industrial development and employment creation.
One of the fund’s key concerns is ensuring a sustainable feedstock
supply for petrochemical units. Ahmadi noted that the NDF closely coordinates
with the National Petrochemical Company to select projects with sufficient
justification, avoiding facilities that may face feedstock shortages
post-construction.
“Economic growth and increased production are the only paths to
overcoming economic crises,” Ahmadi said, noting that despite an 8% growth
target, recent estimates indicate negative growth in some sectors. He stressed
that tapping domestic capacities and the NDF’s resources is now indispensable.
Ahmadi also cited the fund’s recent participation in expanding Iran’s
oil production capacity by 250,000 barrels per day, an investment expected to
generate direct returns while creating fresh capital for future projects.
Beyond energy, the NDF has supported 39 steel projects valued at $2.3
billion, 50 power projects worth $5.5 billion, 15 transport projects, seven
water and desalination schemes, and more than 214 other economic projects
totaling $4.4 billion. However, Ahmadi highlighted repayment challenges, noting
that the Ministry of Petroleum remains one of the fund’s largest debtors, with
nearly $17 billion outstanding.
Ahmadi outlined new financing tools aimed at more effective capital
deployment. Traditional models involved three-year construction and four- to
five-year repayment schedules, with returns flowing to the fund
post-completion. The NDF now employs a wider array of instruments, including
foreign exchange facilitation, local-currency loans pegged to the dollar, and
bond issuance.
For instance, the fund recently issued €200 million in bonds in
cooperation with a lead bank, with another €150 million planned to support
Marjan Petrochemical’s expansion projects. The NDF has also introduced a “buyer
credit” mechanism, allowing producers to convert credit sales into immediate
cash, as well as short-term two-year bonds to complete nearly finished projects
requiring only 5–10% of remaining capital.
“These innovative financing tools are designed to accelerate project
completion, expand production, and reinforce the country’s economic
resilience,” Ahmadi said.