Iran Seeks to Accelerate Petchem Development Through Sustainable Financing

Iran Seeks to Accelerate Petchem Development Through Sustainable Financing
(Wednesday, September 24, 2025) 11:46

Tehran, Sept. 24 (NIPNA) – Iran’s National Petrochemical Company (NPC) is pushing for accelerated development of petrochemical projects through stable financing mechanisms, underlining the sector’s key role in driving economic growth and foreign exchange earnings, the company’s Investment Director said Wednesday.


Speaking at a pre-session of the “International Investment and Financing in Oil, Gas, and Petrochemical Industries” conference at Allameh Tabataba’i University, Hamidreza Ajami emphasized that petrochemicals remain one of the pillars of Iran’s economy. “Today, the petrochemical industry acts as a growth engine and a sustainable source of foreign currency,” he said, noting that over 25% of Iran’s non-oil exports come from this sector.

Ajami highlighted the industry’s resilience despite years of sanctions. Iran currently operates 76 active petrochemical complexes with a total annual production capacity of 36.9 million tons, including 20 complexes in the Mahshahr Special Economic Zone, 25 in Asalouyeh, and 28 in other regions. Three auxiliary service complexes—Fajr, Mobin, and Damavand—supply utilities for production facilities.

The NPC has focused on three pillars in investment development: licensing, partnership creation, and financing. Ajami said all licensing is now handled via a national electronic system, removing direct individual influence and eliminating “golden signature” practices.

Citing successful joint ventures, Ajami mentioned domestic collaborations such as Polymer Arya Sasol and Petrochemical Mehr with NPC, and international cooperation with Thailand’s PTT and the Alliance Holding in the Philippines.

The director stressed the need for substantial financing, noting that 145 licensed petrochemical projects are at various stages of progress. Projects with less than 20% completion require $63 billion, those between 20–70% need $21 billion, and 22 projects with over 70% completion require $12.2 billion to reach operational status.

Ajami also outlined financing strategies, including leveraging National Development Fund resources, gold and foreign exchange centers, central and commercial banks, leasing bonds, and specialized deposits. Foreign credit lines are being used for eight priority projects with a combined capacity of 11 million tons and an estimated $7.5 billion investment, selected based on export market reliability, shareholder financial capacity, and international economic feasibility.

On operational challenges, Ajami said a dedicated NPC task force has held 24 sessions with Iran’s National Oil and Gas Companies to ensure a stable feedstock supply for ongoing production. “While supply is relatively secure, the industry must continuously monitor and plan for potential challenges to sustain growth,” he added.

 


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