NPC Official Calls for Smarter, Region-Based Approach to Downstream Development

NPC Official Calls for Smarter, Region-Based Approach to Downstream Development
(Wednesday, October 8, 2025) 14:37

Tehran, Oct. 8 (NIPNA) — The head of downstream development at Iran’s National Petrochemical Company (NPC) has called for a “smarter and regionally grounded” strategy to expand the country’s downstream petrochemical industries, stressing the need for coordination among regulatory bodies and the adoption of a binding national industrial development plan.


Mohammad Motaghi, NPC’s Director of Downstream Industries Development, told NIPNA that his office serves as a link between the Petroleum Ministry, NPC, the Ministry of Industry, Mine and Trade, the Iran Mercantile Exchange, and various industrial associations — and that regular expert meetings among these bodies can help address key challenges facing the sector.

Motaghi described the downstream development pathway as “complex and multi-dimensional,” noting that while upstream operations rely on feedstock, financing, technology, and market access, downstream progress depends more on the availability of raw materials, energy infrastructure, regulatory stability, and skilled labor.

“Development must be aligned with each region’s advantages and limitations to prevent unbalanced concentration,” he said. “Some provinces face water scarcity, others lack adequate market access or infrastructure. Directing investment based on local strengths ensures more efficient and sustainable growth.”

Missed Opportunities in Chemical Value Chains

Motaghi criticized the country’s heavy focus on polymer production, saying Iran has lagged behind in developing higher-value chemical segments. “Globally, the greatest value addition in chemical parks comes from the chemical sector, but in Iran, this part has been largely neglected,” he said.

He emphasized the downstream sector’s untapped potential for job creation, particularly for semi-skilled and technical workers. Plans are underway, he added, to introduce targeted vocational training programs tailored to industry needs.

Structural Gaps and Data Deficiency

Motaghi also cited the absence of an integrated information system for investors as a major obstacle. “Investors need a single window to access data on land, energy, infrastructure, and markets. The Ministry of Industry should host such a platform through the industrial townships,” he said.

Although the NPC has published project and study data to improve transparency, Motaghi said a unified national database is essential to end confusion and duplication among investors.

Public–Private Partnership and Modern Technologies

Motaghi called for a revision of the government–private sector partnership model, noting that global chemical parks are successful examples of such collaboration. He pointed to Mahshahr’s second development phase, where large areas have been designated for downstream projects to create a complete value chain.

He also urged greater investment in modern technologies such as biopolymers, green petrochemicals, and chemical recycling. “The world is moving rapidly toward sustainable and circular chemistry, but Iran remains dependent on outdated technologies,” he warned.

Need for Binding Industrial Policy

Motaghi concluded that Iran’s main challenge is not the absence of development plans, but the lack of a binding and enforceable industrial policy.

“If a mandatory national industrial roadmap is implemented and followed, temporary decisions or price fluctuations in feedstock and energy will no longer derail progress,” he said. “True development happens only when all key actors in the industry move in a coordinated and evidence-based direction.”

 


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